Can I Do a Short Sale?

Do I have to be late on a mortgage payment to apply for a short sale?

Many homeowners and borrowers think that they need to be delinquent or late on a mortgage payment or two before they can ask for a short sale. But this just isn’t the case. At this point though, many homeowners simply neglect to have any communication with their lender and eventually will be foreclosed on.

A foreclosure is much harder on your credit history and report than a short sale. Especially if you are up-to-date and current with your mortgage payments, a short sale may not be nearly as bad of hit as if you were delinquent or fell into foreclosure. Simply walking away from the property is one of the worst things you can do.

If you are currently up-to-date with your mortgage payments but are finding it more and more difficult each month to make that payment or you have a large balloon payment coming up and certain circumstances are making it very difficult to make your payment each month, a short sale may be the relief you need.

The first step is to talk to a short sale specialist or agent in your area that knows the process, the details behind each transaction, and can communicate to your lender on your behalf. They will discuss your options and if you choose to stay in the home, the lender may offer you alternatives such as a refinance, mortgage modifications, or other programs currently available.

If a short sale does seem inevitable, you will need to write a letter of hardship to the lender explaining the difficulty you are having paying your mortgage payment. Many times job loss, medical bills, or other hardships can cause bills to back up and makes it difficult to come up with the mortgage payment each month. Simply communicating this to your lender and allowing them to decide whether this is a true hardship with the amount of income and the amount of debt you currently have, can alleviate a load of stress off of your mind.

If however, you do make enough in your current income and occupation, do not have a lot of debts or foresee debts in the future, and can reasonably make your mortgage payment each month, the lender is not likely to allow a short sale to continue.

The very best option is to contact a short sale agent or your lender to discuss options and the steps involved that you will need to take to get on the short sale path quickly and efficiently.

San Jose Short Sale Closes on 1-6-2012

San Jose Short Sale Closes on 1-6-2012

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.

Alternatives to Foreclosure

  • List Date: 10/15/2011
  • List Price: $399,999
  • Number of Offers: 1
  • Sale Date: 10/20/2011
  • Days on Market: 6
  • Lender Approval 1st Lien with Bank of America: 12/8/2011
  • Lender Approval 2nd 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!

San Jose Short Sale Agents and Third Party Negotiators

Hiring San Jose Short Sale Agents who hire a Third Party Negotiator is much like drinking and driving. It’s a lethal combination that could be deadly in terms of a successful short sale. Prudent decision-making dictates … don’t do it!

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.  

Short Sales are not Child's Play

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.

Hire an Experienced Short Sale AgentEven 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

Money and Power – Follow the Money

I recently received my personally signed copy of Money and Power by Steven Sadleir who I met for the first time about 6 years ago. I am impressed with Steven’s background and his message to the world. Steven is about spreading peace, love, joy and happiness … creating Heaven on Earth.

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.

San Jose Short Sales – Agent Short a Full Deck

San Jose Short Sales

Agent Short a Full Deck? 

 

It makes perfect sense that a seller or home buyer may not clearly understand short sales.  It seems that I find myself explaining short sales on a daily basis.

What baffles my mind are the Agents who write offers on short sales and believe that because the offer is ALL CASH the Banks will allow the property to be sold significantly below market value.

Adding to my confusion is why an agent would submit an ALL CASH offer in December 2010 and provide a letter from the bank dated 6-25-2010 which verifies LESS funds than the all cash offer price.   Not only is the verification of funds letter nearly 6 months stale … I’m wondering if the agent understands San Jose short sales.

To be clear, when a lender approves a short sale, the lender agrees to accept less than what the seller/borrower owes on the property provided the offer to purchase is a fair market value offer and is supported by a loan approval letter and proof of funds to close the transaction.

It appears the agent who wrote the offer may simply be short a full deck in her understanding of real estate and short sales.

Short Sales are not a Real Estate Board Game. Short Sales are designed to help homeowners avoid foreclosure.  Most homeowners choose short sales among the foreclosure alternatives.

Buyers making offers on short sales need to choose an agent who understands the short sale process. and how to write an offer.

San Jose Short Sales Listing Agent, Kathleen Daniels is committed to helping homeowners avoid foreclosure.  It is important that only strong offers be considered and that the buyer and the buyer’s agent understands the process … short sales are no joking matter.

Facing Foreclosure?

Call 1-800-972-1822 for a free consultation to discuss your options!


San Jose Short Sales – $300 buys Short Sale Approval

San Jose Short Sales – $300 buys Short Sale Approval

San Jose Short Sales kicks some Short Sales Bootie! When to going gets tough – the tough get going!

The Short Sale saga continues San Jose Short Sales – When Best Efforts Fall short

We got a third buyer into contract; submitted the offer to the new servicer (RCSI); and got the Trustee Sale date postponed for the third time.

RCSI declined the file and closed the file.

WHAT!?

We were told that the notes say that the offer needed to be at $XXX,000 to be considered. A message was sent to the negotiator to DISCUSS the file with us.  It’s so easy for them to just close a file and move on.  Negotiator did respond.

We just don’t give up. When the going gets touch … the tough get going, tough, tough.  When the going get tough, the tough get ready …

We escalated the file. We spoke with a manager whose brain activity measured above “brain dead.”  We got the file re-opened with a counter offer $50,000 over the offer price.  This was $30,000 less than the first counter offer which was $80,000 above market value.  Make sense? Of course is doesn’t make any sense. Add to that, prior to getting the trustee sale date postponed … the opening bid was over $120,000 LESS than the counter offer.

The buyers needed to come up $50,000 OR we needed to get an appraisal to support the buyers offer. No buyer would pay what the bank was demanding. If a buyer were “brain-dead” enough to offer that much, the buyers appraisal would, shall we say, have some issues.

We asked the sellers to pay $300 for an appraisal which was our only hope of getting the short sale approved and the sellers desire to avoid foreclosure.  The sellers agree to make the investment as their last hope to avoid foreclosure.

I called my appraiser who completed a rush appraisal on Saturday afternoon and had the written report to us that evening. It certainly helps to know appraisers who are willing to work weekends and do what is necessary knowing time is of the essence.  We uploaded the appraisal on Sunday so the negotiator would have it first thing Monday morning.

Sellers paid $300 for a full appraisal which did support the purchase price of $50,000 less than the banks counter offer.  Short sale was approved at the offer price.

Next phase of the San Jose Short Sales challenge – Will the Buyer stick and close?

San Jose Short Sales – $300 Buys Short Sale Approval – by Kathleen Daniels, San Jose Real Estate Agent

San Jose Short Sale Decisions in 45 Days!

Short Sale Decisions required to be made in 45 days!

House Bill H.R. 6133 proposes:

Prompt Decision for Qualification of Short Sale Act of 2010

To require the lender or servicer of a home mortgage, upon a request by the homeowner for a short sale, to make a prompt decision whether to allow the sale.

H.R.6133 was introduced into the house on September 15, 2010 and was referred to the Committee on Financial Services.

Historically obtaining short sale approvals have been a very slow process.

This bill would spur growth in the housing market by helping sellers and buyers complete short sales quickly” said Representative Tom Rooney who sponsored the bill with Representative Robert Andrews.

The number of short sale properties continues to rise. According to the National Association of Realtors (NAR), 28 percent of California properties for sale in the second quarter of 2010 were short sales.

“Unfortunately, homeowners who need to execute a short sale are severely hampered because lenders (loan servicers) are unable to decide whether to approve a short sale within a reasonable amount of time,” said NAR President Vicki Cox Golder.

“NAR believes that quicker attention to the short sales process is vital to help homeowners who are underwater and their communities, as well as the nation’s economy,” said Golder.

The bill is written to default (no pun intended) to short sale requests shall be “considered to have been approved by the servicer” if the servicer does not provide a written notification if the request has been approved; approved subject to certain changes; or that additional information is required before the expiration of the 45 day period.

The provisions of H.R. 6133 apply only to written requests for a short sale made after the date of the enactment of the Act. This means possible future hope for short sale homeowners, buyers and short sale professionals.

San Jose Homes for Sale

Certified San Jose Short Sale Specialist

Certified HAFA Specialist

Copyright © 2010, All Rights Reserved by Kathleen Daniels, Certified Distressed Property Expert, Certified HAFA Specialist, RDCPro *San Jose Short Sale Decisions in 45 Days!*

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