Friday, May 6, 2011
Thursday, March 31, 2011
Monday, January 17, 2011
Wednesday, December 15, 2010
Sunday, April 11, 2010
Short Sale Management for Home Owners
Short sales can be stressful and a time-consuming process. But in many cases they will be necessary in order to get you out from under your mortgage debt, especially with property values declining like they are today. By doing a short sale, you will be able to take a large bite out of the money you owe to your mortgage company, so that you are no longer liable for the entire amount.
In order to start the short sale process, there are several documents that are needed from you (see below). First off is a third party authorization. This form is so that a third party can speak to the bank on your behalf. This will be included with the rest of the short sale package, or it can be sent over ahead of time. In cases where your Lender requires your property to be listed in order for them to accept a short sale, then we can refer you to many of our top-producing, local agents that we have worked many successful short sales with.
Typical Short Sale Requirements (to be collected from the homeowner)
* Hardship letter – which states what happened to cause you to fall behind, when it happened, and what you’re doing to fix the situation
* Financial worksheet – a breakdown of all your income and expenses
* Your last month of pay stubs or a recent profit and loss statement if self-employed. If you can’t provide either of those then you’ll need a signed and dated explanation of why.
* Your last two months of bank statements
* Your last two years of tax returns (the first two pages only)
* Purchase and Sales Agreement and a listing agreement
In some cases your lender may require additional documentation, or they may require updated documentation, so always keep important paperwork handy and be ready for those requests! If you’re unable to provide requested paperwork in a timely fashion the lender may close your file and you’ll need to start all over! *please note: If you don’t have one or more of the short sale required documents please hand write a letter stating why you do not have that document(s) and sign and date it.
Once those documents are collected the short sale package will then be submitted to the lender(s) and the process will begin. And once the process has been initiated on your property you’ll be able to check the current status of your short sale by visiting Trilogy Property Solutions. You will be given a secure login and password to view the status of your short sale in Real-Time. You’ll also be able to access any other documents you may need, or that will be needed from you.
Email me your property address and telephone number to get started
mike@wemovela.com 323-251-4351
In order to start the short sale process, there are several documents that are needed from you (see below). First off is a third party authorization. This form is so that a third party can speak to the bank on your behalf. This will be included with the rest of the short sale package, or it can be sent over ahead of time. In cases where your Lender requires your property to be listed in order for them to accept a short sale, then we can refer you to many of our top-producing, local agents that we have worked many successful short sales with.
Typical Short Sale Requirements (to be collected from the homeowner)
* Hardship letter – which states what happened to cause you to fall behind, when it happened, and what you’re doing to fix the situation
* Financial worksheet – a breakdown of all your income and expenses
* Your last month of pay stubs or a recent profit and loss statement if self-employed. If you can’t provide either of those then you’ll need a signed and dated explanation of why.
* Your last two months of bank statements
* Your last two years of tax returns (the first two pages only)
* Purchase and Sales Agreement and a listing agreement
In some cases your lender may require additional documentation, or they may require updated documentation, so always keep important paperwork handy and be ready for those requests! If you’re unable to provide requested paperwork in a timely fashion the lender may close your file and you’ll need to start all over! *please note: If you don’t have one or more of the short sale required documents please hand write a letter stating why you do not have that document(s) and sign and date it.
Once those documents are collected the short sale package will then be submitted to the lender(s) and the process will begin. And once the process has been initiated on your property you’ll be able to check the current status of your short sale by visiting Trilogy Property Solutions. You will be given a secure login and password to view the status of your short sale in Real-Time. You’ll also be able to access any other documents you may need, or that will be needed from you.
Email me your property address and telephone number to get started
mike@wemovela.com 323-251-4351
Tuesday, February 16, 2010
Friday, February 5, 2010
MARKET FORCAST: TRENDS TO WATCH
Jobs, foreclosures, option-adjustable-rate mortgages, and interest rates are among the top trends that could dictate what will happen in California's housing markets this year. Here's what you need to know to make sense of how these trends could affect the real estate market.
1. Market Fundamentals
Three market fundamentals that turned positive in 2009 could be good indicators this year as well.
First, home prices have fallen lower than replacement costs in many markets. This means a home can be bought for less than the cost to build it.
Second, home prices are "a lot more attractive" relative to rents than they have been in many years; and
third, inventory of for-sale homes has "dropped very dramatically," says Richard K. Green, director of the
USC Lusk School of Real Estate in Los Angeles. That suggests some markets have stabilized, although
homes priced at more than $1 million may be an exception. "There is still a lot of pain left to come"
in that segment of the market, Green warns.
2. Jobs
"Painful" describes the employment picture and the outlook for wage hikes and job security. Moreover,
housing may now be less sensitive to traditional jobmoving patterns, observes Stefan Swanepoel, a real
estate trends expert, author, and speaker in Aliso Viejo. Home sales that involve corporate relocations or
year-end job changes may be moribund until the employment situation improves.
3. Foreclosures
Jobs are an important factor in foreclosures, though "not everyone who has lost a job has lost their
house yet," Swanepoel says. Homeowners who've lost a job may have had to live on lower wages or one
income, or may have had to tap into their savings or retirement accounts to get by. "If they don't get a
decent job or a good job soon, I can see their houses still coming on the market in foreclosures or
short sales," he says.
Another trend to watch is that some homewners have dodged foreclosure even though they haven't
made their mortgage payments, according to Sean O'Toole, chief executive of ForeclosureRadar.com.
"We don't have the political or societal will to foreclose on [that many] people, but nor do we have
the will to bail out those homeowners who can't afford their payments," O'Toole says. That stalemate
has slowed the pace of foreclosures, which may mean fewer opportunities for REALTORS® to list and
sell those homes, he suggests.
4. Lenders and Loans
Home loans are crucial to healthy housing markets, so REALTORS® need to keep an eye on national
lenders that originate loans locally, Swanepoel suggests. "As they digest the companies they've acquired and find out what loans they have, what loans they are servicing, and what their exposure in certain markets is, they might change their rules and terms and conditions," he warns. Tougher requirements for loans insured by the Federal Housing Administration (FHA) could have an effect on housing as well.
5. Interest Rates
Interest rates could turn out to be the ultimate wild card. How long the Federal Reserve will keep interest
rates low is an unanswerable question on which hangs the future of housing. The Fed's ability to
maintain low interest rates is "the greatest risk to the real estate industry right now," says O'Toole.
"If interest rates go to 8 percent, this market is over."
6. Option-ARM Recasts
Low interest rates have taken the sting out of adjustable-rate mortgages (ARMs), but the paymentoption
variety is still watch-worthy because a recast to make up negative amortization can result in an
enormous payment shock, Green notes. "You could set up a fairly simple example where interest rates
don't go up at all, but the payment doubles," he says. "If that loan was originated with a 90 percent
loan-to-value ratio and you are piling up principal, you could be deeply underwater and unable to make
the payment." Aggressive loan modification programs have blunted the expected blow from option-
ARM recasts, but many homeowners still owe more than their home is worth and 30-day delinquencies
have continued to climb, O'Toole observes.
That suggests more homeowners may throw in the towel. "Strategic walk-aways from negative equity
and/or due to job loss are going to be a bigger issue because modification programs and low interest
rates likely have taken up the slack from the reset/recast issue," he explains.
Jobs, foreclosures, option-adjustable-rate mortgages, and interest rates are among the top trends that could dictate what will happen in California's housing markets this year. Here's what you need to know to make sense of how these trends could affect the real estate market.
1. Market Fundamentals
Three market fundamentals that turned positive in 2009 could be good indicators this year as well.
First, home prices have fallen lower than replacement costs in many markets. This means a home can be bought for less than the cost to build it.
Second, home prices are "a lot more attractive" relative to rents than they have been in many years; and
third, inventory of for-sale homes has "dropped very dramatically," says Richard K. Green, director of the
USC Lusk School of Real Estate in Los Angeles. That suggests some markets have stabilized, although
homes priced at more than $1 million may be an exception. "There is still a lot of pain left to come"
in that segment of the market, Green warns.
2. Jobs
"Painful" describes the employment picture and the outlook for wage hikes and job security. Moreover,
housing may now be less sensitive to traditional jobmoving patterns, observes Stefan Swanepoel, a real
estate trends expert, author, and speaker in Aliso Viejo. Home sales that involve corporate relocations or
year-end job changes may be moribund until the employment situation improves.
3. Foreclosures
Jobs are an important factor in foreclosures, though "not everyone who has lost a job has lost their
house yet," Swanepoel says. Homeowners who've lost a job may have had to live on lower wages or one
income, or may have had to tap into their savings or retirement accounts to get by. "If they don't get a
decent job or a good job soon, I can see their houses still coming on the market in foreclosures or
short sales," he says.
Another trend to watch is that some homewners have dodged foreclosure even though they haven't
made their mortgage payments, according to Sean O'Toole, chief executive of ForeclosureRadar.com.
"We don't have the political or societal will to foreclose on [that many] people, but nor do we have
the will to bail out those homeowners who can't afford their payments," O'Toole says. That stalemate
has slowed the pace of foreclosures, which may mean fewer opportunities for REALTORS® to list and
sell those homes, he suggests.
4. Lenders and Loans
Home loans are crucial to healthy housing markets, so REALTORS® need to keep an eye on national
lenders that originate loans locally, Swanepoel suggests. "As they digest the companies they've acquired and find out what loans they have, what loans they are servicing, and what their exposure in certain markets is, they might change their rules and terms and conditions," he warns. Tougher requirements for loans insured by the Federal Housing Administration (FHA) could have an effect on housing as well.
5. Interest Rates
Interest rates could turn out to be the ultimate wild card. How long the Federal Reserve will keep interest
rates low is an unanswerable question on which hangs the future of housing. The Fed's ability to
maintain low interest rates is "the greatest risk to the real estate industry right now," says O'Toole.
"If interest rates go to 8 percent, this market is over."
6. Option-ARM Recasts
Low interest rates have taken the sting out of adjustable-rate mortgages (ARMs), but the paymentoption
variety is still watch-worthy because a recast to make up negative amortization can result in an
enormous payment shock, Green notes. "You could set up a fairly simple example where interest rates
don't go up at all, but the payment doubles," he says. "If that loan was originated with a 90 percent
loan-to-value ratio and you are piling up principal, you could be deeply underwater and unable to make
the payment." Aggressive loan modification programs have blunted the expected blow from option-
ARM recasts, but many homeowners still owe more than their home is worth and 30-day delinquencies
have continued to climb, O'Toole observes.
That suggests more homeowners may throw in the towel. "Strategic walk-aways from negative equity
and/or due to job loss are going to be a bigger issue because modification programs and low interest
rates likely have taken up the slack from the reset/recast issue," he explains.
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