Are distressed homeowners giving up on short sales?

With foreclosure filings on the rise due in large part to continued employment losses and fallout from faulty mortgage loan modifications, it seems fewer and fewer homeowners are considering the possibility of short selling their home.

Within my own community, more than 80% of the homes that are currently in the foreclosure process are not listed for sale in the local MLS. What is even more staggering is the fact that over 50% of these same homes in pre-foreclosure have not been listed for sale in the MLS for the past 10 years!!

With REO inventories rising month after month, banks and mortgage lenders alike are more interested in approving short sales now than in the past three years. More and more short sales are getting approved, yet fewer and fewer homeowners are even giving short selling their home a shot.

So, what's the answer? I find it hard to believe that this many distressed homeowners are simplygiving up hope on short selling their home.

Enlighten me folks! Give me your opinion on this issue,

Mike Sikorski MBA GRI CRS

Licensed Real Estate Broker

MLS of Florida Realty Corporation

22079 Kimble Avenue

Port Charlotte Florida 33952

(941) 875-1203

Mike@FloridaRealty.net 

HEADLINE: Mike Sikorski launches website and marketing plan specific to homeowners facing foreclosure hardship in the Port Charlotte real estate market

Port Charlotte, FL - Mike Sikorski, a Port Charlotte real estate broker, has developed a marketing strategy and website that is focused on assisting distressed homeowners find information and investigate options to avoid the foreclosure process. As an expert in short sales, a real estate transaction option that banks will consider instead of foreclosure with specific guidelines, Mike Sikorski is determined to provide essential knowledge to homeowners in Port Charlotte facing this unfortunate circumstance.

Visitors to ShortSellYourHome.net will find information regarding the process of foreclosure, what effects foreclosure has on a homeowner, and ways to prevent the foreclosure process from continuing. The website features easy-to-understand informational tools such as a list of frequently asked questions, a glossary of terms and free reports as well as resources that allow the homeowner to get their questions addressed in a confidential manner. In addition, the website offers the homeowner information regarding short sales, often a viable solution to foreclosure that can save a distressed homeowner from the damaging effects foreclosure has on their credit.

 "I feel that it is important in today's economic conditions for homeowners to know that they have options other than the foreclosure route," says Mike Sikorski. "Statistics show that 50% of homeowners facing this stressful situation often ignore the issue and that doesn't have to be. There are options such as a short sale, especially if the homeowner works with an experienced REALTOR® to provide them assistance in showing the lender the hardship situation and other real estate documentation."

Mike Sikorski new website provides visitors with a description of how the short sale process works, how it compares to a foreclosure, and how a homeowner may be able to qualify for a short sale.

For more information about foreclosures and short sales in Port Charlotte, please feel free to visit the website at www.ShortSellYourHome.net  or to contact them directly at 941-875-1203 and by emailing Info@ ShortSellYourHome.net.

Go to www.ShortSellYourHome.net/FreeReports for your free, no obligation reports on the benefits of short selling your home!

Mike Sikorski launches website and marketing plan specific to homeowners facing foreclosure hardship in the Port Charlotte real estate market

Port Charlotte, FL - Mike Sikorski, a local real estate broker specializing in the marketing of homes by short sale, has developed a marketing strategy and website that is focused on assisting distressed homeowners find information and investigate options to avoid the foreclosure process. As an expert in short sales, a real estate transaction option that banks will consider instead of foreclosure with specific guidelines, Mike Sikorski is determined to provide essential knowledge to homeowners in Port Charlotte facing this unfortunate circumstance.

Visitors to www.ShortSellYourHome.net will find information regarding the process of foreclosure, what effects foreclosure has on a homeowner, and ways to prevent the foreclosure process from continuing. The website features easy-to-understand informational tools such as a list of frequently asked questions, a glossary of terms and free reports as well as resources that allow the homeowner to get their questions addressed in a confidential manner. In addition, the website offers the homeowner information regarding short sales, often a viable solution to foreclosure that can save a distressed homeowner from the damaging effects foreclosure has on their credit.

 "I feel that it is important in today's economic conditions for homeowners to know that they have options other than the foreclosure route," says Mike Sikorski. "Statistics show 50% of homeowners facing this stressful situation often ignores the issue and that doesn't have to be. There are options such as a short sale, especially if the homeowner works with an experienced REALTOR® to provide them assistance in showing the lender the hardship situation and other real estate documentation."

Mike Sikorski's new website provides visitors with a description of how the short sale process works, how it compares to a foreclosure, and how a homeowner may be able to qualify for a short sale.

For more information about foreclosures and short sales in Port Charlotte, please feel free to visit the website at www.ShortSellYourHome.net  or to contact them directly at 941-875-1203 and by emailing Info@ ShortSellYourHome.net.

Quoting from an article that I read in the real estate section of the Sarasota Herald Tribune, "an executive with Bank of America (seated as a panelist at the National Association of Real Estate Editor's Spring Journalism Conference), pointed out with an apparent degree of satisfaction, that 86% of its mortgage borrowers continue to pay on time".  I guess in the eys of this executive, that the 14% of mortgage borrowers who are suffering some type of financial distress in making their monthly mortgage payments on time, is acceptable.  Interesting observation, considering Countrywide Financial is mostly responsible for originating the toxic mortgage loans that represent a large portion of this acceptable delinquency. 

The new federal guidelines designed to speed up the short sale process, otherwise known as the Home Affordable Foreclosure Alternatives program, will likely pressure banks and mortgage lenders to provide the one-answer homeowners and their real estate professionals do not want to hear: NO!

Pressuring banks, credit unions, and mortgage lenders into a timeline of 10 days to process a short sale is completely unrealistic, especially since the federal government has failed to address the root causes of the lengthy delays of the short sale process in the first place. 

Most of the delays in getting short sales approved are largely due to lender inefficiency and government bureaucracy.

Loss Mitigation Specialists charged with reviewing and approving most short sale requests by their respective bank, credit union, or mortgage lender are woefully undertrained in even the most basic underwriting skills, as well as inundated with hundreds of short sale requests. Banks, credit unions, and mortgage lenders would be better served to hire experienced mortgage loan underwriters, using underwriting guidelines set forth by Fannie Mae & Freddie Mac, to process their short sale requests.  Increased staffing of these specialists would also be a huge plus to improving the short sale process.

Mortgage loans guaranteed or insured are another reason for the lengthy delays in the short sale process.  The Veterans Administration (VA), Federal Housing Administration (FHA), and the United States Department of Agriculture, charged with guaranteeing or insuring mortgage loans, often have the final say in whether or not a homeowner will be approved for a short sale of their home. Anyone who has dealt with the federal government already knows the pain-staking processes one has to go through to accomplish even the smallest of tasks.  There are simply too many hurdles to overcome in a reasonable period in getting a response on a short sale from these loan guarantors/insurers.  A streamlined process of communication between banks, credit unions, mortgage lenders, and their respective loan guarantors and insurers would go a long way in speeding up the short sale process.

Last, differentiating between homeowners who qualify for a short sale, and those who do not, also delays the short sale process.  Homeowners having little or no difficulty in making their monthly mortgage payments, but still request a short sale of their home simply because their saddled with more debt than their home's equity can support, are hindering the short sale process for those homeowners in true financial distress from getting their short sale request approved.  Setting a minimum standard for homeowners to qualify for a short sale, as well as discouraging those homeowners fully capable of making their monthly mortgage loan obligation from applying for a short sale would certainly improve the process of helping those homeowners truly in need of assistance. 

Everyone wants a faster short sale approval process, but identifying and recognizing the root causes of the delays of the short sale process should be addressed before truly meaningful timelines for getting a short sale approved can implemented or even suggested.

Mike Sikorski MBA, GRI

Licensed Real Estate Broker

MLS of Florida Realty Corporation

22079 Kimble Avenue

Port Charlotte, Fl. 33952

(941) 206-6000

Mike@FloridaRealty.net

23 Legal Defenses to Foreclosure: How to Beat the Bank"

Author:  Troy Doucet

440 pages

Publication date: 2008

Publisher: Custom Books Publishing

ISBN: 1438278195

Did you know that there are laws on the books that protect you AND help you defend yourself against the prospect of a mortgage foreclosure? Did you know that certain lending law violations may win for you punitive damages against your mortgage lender, including the cancellation of your mortgage loan?

One of the most useful and informative books that I have found dealing with the subject of mortgage foreclosures is "23 Legal Defenses to Foreclosure: How To Beat The Bank", an easy to read ‘how-to' manual that explains various defenses you the consumer have available to you when dealing with a mortgage loan foreclosure.  There a total of 53 defenses to foreclosure that is contained within the book, all of which are covered in an easy to understand format.

The following are some examples of the legal defenses of foreclosure provided in the book:

• Truth in Lending Act (TILA) violations enabling rescission
• Truth In Lending Act (TILA) violations enabling damages
• Failure to Provide a Correct Notice of the Right to Rescind.
• Unconscionability

Each chapter is dedicated to one defense or counter claim (a lawsuit against your lender), and is broken down into parts as follows:

Defined: Provides the reader a brief explanation of what the defense is, and the ability to quickly understand the basics of the defense.

Spot It! This gives the reader the ability to quickly spot whether or not the defense applies to their situation.

Limitations: If the defense has limitations or drawbacks, it will be identified here.

Potential Recovery: What is the defense worth? Is it a tool that enables rescission of a loan, or is it worth only a few hundred dollars? 

23 Legal Defenses to Foreclosure addresses specific Federal lending law violations that are valid defenses to foreclosure in every state, including:

•·         Truth In Lending Act (TILA)

•·         Home Ownership Equity Protection Act (HOEPA)

•·         Real Estate Settlement Procedures Act (RESPA)

•·         Fair Debt Collection Practices Act (FDCPA)

•·         Failure to verify assets

 23 Legal Defenses to Foreclosure also includes legal letters, forms, motions, an "Answer" to a foreclosure lawsuit, and sample discovery to get damaging information directly from your mortgage lender.

Chapters within the book are broken into sections that include:

• A Definition of the legal defense
• The damages available
• A litigation strategy
• Elements and factors to prove in court
• Checklist and worksheets
• Whether you can sue others

The author is Troy Doucet, a Juris Doctor candidate in Ohio whose previous career was in residential loan origination for many years.  Mr. Doucet gained notoriety within the mortgage industry several years ago when he called for the elimination of all junk fees in mortgage loans.  Since leaving the mortgage industry in 2006, Mr. Doucet has pursued his law studies as well as performing Forensic Mortgage Loan Audits for TILA and HOEPA violations.  Additionally, Mr. Doucet assists attorneys nationwide in combating foreclosures on behalf of consumers.

Although this book is an excellent reference guide for consumers to better understand the foreclosure process and the rights afforded to them under the law, it is not the author's intent to suggest this book as replacement for competent legal counsel. 

23 Legal Defenses to Foreclosure is a must read for anyone presently in foreclosure or facing the prospect of a property foreclosure.  Knowing your rights and proper defenses under the law could help you keep your home, and possibly own your home debt free too!  On a scale of 1 to 10, I give this book a solid 10.

23 Legal Defenses to Foreclosure sells for $39.95. To order a copy of the book "23 Legal Defense to Foreclosure: How To Beat The Bank", go to www.Amazon.com or you can purchase the book directly from the publisher at www.CreateSpace.com/3349582.   

Mike Sikorski MBA, GRI

Licensed Real Estate Broker

Licensed Mortgage Broker

Forensic Mortgage Loan Auditor

MLS OF FLORIDA REALTY CORP.

22079 Kimble Avenue

Port Charlotte, Fl. 33952

Phone (941) 206-6000

Mike@FloridaRealty.net

In the mad dash to relist a property for sale in the MLS after a foreclosure sale has taken place, many of these properties are not eligible for sale!  The back log of filings of Certificate of Title in many circuit court systems around Florida have left many of the home titles in the previous owners name for several weeks after the Public Sale has taken place!  In most instances, the Certificate of Title is recorded within 10 days after the Public Sale has taken place, forcing the previous owner to move out quickly.  today, many of the Public Sales that occurred 60 and even 90 days ago have still failed to record the Certificate of Title.  This can prove especially difficult, especially if a property is listed for sale and a buyer wants to close within the standard 30 day period after the purchase contract has been executed. 

Mike Sikorski, MBA GRI

Licensed Real Estate Broker

Licensed Mortgage Broker

MLS OF FLORIDA REALTY CORP.

22079 Kimble Avenue

Port Charlotte Florida 33952

941-206-6000

Mike@FloridaRealty.net

www.FloridaRealty.net

"Unqualified" homeowners are being offered mortgage loan modifications by their bank or mortgage lender that are ultimately designed to fail, in a slight of hand effort to offer token assistance to consumers who should never have received mortgage loans in the first place.

The mortgage industry estimates that over 60% of mortgage loans modified are likely to become delinquent less than 12 months after the loan modification is made.  Given the fact that many of the mortgage loans modified today do very little to help homeowners in the first place, it is not a wonder why so many ‘modified' mortgage loans end up in foreclosure.

Although many ‘qualified' consumers are receiving favorably modified mortgage loan terms due in large part to sufficient monthly income and low debt to income ratios, many homeowners who have lost significant household income since first receiving their mortgage loan are being locked out of the loan modification process, otherwise seen as ‘unqualified'.  Even the government sponsored mortgage loan bailout programs are disqualifying many of these homeowners simply because they would not otherwise qualify under regular government loan-underwriting guidelines.

Thousands of homeowners, whose mortgage loans have been identified as loans that should have never closed in the first place, are being targeted early on in the loan modification process, often suggesting that the homeowners should strongly consider selling their home or refinancing with another mortgage lender, rather than making a bad loan, better.  Requests for loan modifications are given little consideration to these types of mortgage loans, with mortgage lenders offering nothing more than a ‘token' loan modification, one that does little if any good at all in making the monthly mortgage loan payments more affordable or making the mortgage itself more plausible over the life of the loan.

Simply put, banks and mortgage lenders who may have run afoul of traditional mortgage underwriting guidelines, offering high loan to value mortgage loans associated with high debt to income ratios, are simply wanting to keep in that in the past, keeping only those who can meet ‘current' underwriting guidelines, such as debt to income ratios of no more than 38%.  Loan modifications for those homeowners receiving mortgage loans with debt to income ratios upwards of 60% of their gross income are finding the loan modification process to very difficult, especially if their current income has changed from when they first received their mortgage loan.

It is easy to tell a good loan modification from a token loan modification, simply by using the following formulas:

A good mortgage loan modification is one where your mortgage lender offers:

  *Mortgage loan balance is reduced to that of the property's current value

*Convert an Adjustable Rate Mortgage (ARM) into a fixed rate interest loan

*Waive interest and escrow arrearages, including unpaid property taxes and hazard insurance

*A low good faith payment to reinstate a past due loan

A token mortgage loan modification where the mortgage lender offers:

*Add past due interest and/or escrow arrearages to the mortgage loan's current principal balance

*Setting a high interest ARM into a high interest fixed rate mortgage loan

*Increasing a mortgage loan's term from 30 years to as much as 40 years

*A high good faith payment to reinstate a past due loan, often times higher than what a homeowner can reasonably afford to pay at one time.

A good loan modification has improved loan delinquencies tremendously, where in opposition; the token mortgage loan modification has provided disastrous results, often leaving many of these same homeowners in the same quandary they were in even before the loan was modified!

Homes secured by ‘underwater' mortgage loans, that is, where the mortgage loan balance exceeds that of the home's current market value, are without a doubt a huge problem for consumers and industry alike.  Consumers who have suffered financial setbacks such as a job loss or a loss of income, and continue to pay a mortgage loan that is taking a larger portion of their household income that an ordinary would never approve of, should strongly consider their options, including the sale of their home.  Although the option of refinancing a mortgage loan is an option, applicants must still qualify for financing and may have difficulty if their current lender will not consider them to a good risk.

Although homes secured by underwater mortgage loans will likely not sell in a buyer's market such as the down market we are currently experiencing nationwide, a home could sell as a short sale, with many banks and lenders who originally offered a token mortgage loan modification, more than willing to accept a short sale followed by the subsequent debt forgiveness for the remaining principal mortgage loan balance.

The short sale of a home, when properly coordinated, allows the homeowner the potential benefit of full debt forgiveness by their mortgage lender as well as reduced income tax exposure. As always, seek competent, professional advice when seeking answers to questions regarding these specific areas.

The quicker a homeowner accepts the fact that an unaffordable mortgage loan is best resolved by a short sale, the quicker they can re-establish their good standing and purchase another home another home in the near future, secured by a mortgage loan that is affordable and no longer underwater.

For FREE information regarding the benefits of short selling your home, please contact your real estate professional or call (941) 206-6000.

Mike Sikorski, MBA, GRI

Licensed Real Estate Broker

Licensed Mortgage Broker

MLS of Florida Realty Corp.

22079 Kimble Avenue

Port Charlotte, Florida 33952

Phone (941) 206-6000

Email: Mike@FloridaRealty.net

"Unqualified" homeowners are being offered mortgage loan modifications by their bank or mortgage lender that are ultimately designed to fail, in a slight of hand effort to offer token assistance to consumers who should never have received mortgage loans in the first place.

The mortgage industry estimates that over 60% of mortgage loans modified are likely to become delinquent less than 12 months after the loan modification is made.  Given the fact that many of the mortgage loans modified today do very little to help homeowners in the first place, it is not a wonder why so many ‘modified' mortgage loans end up in foreclosure.

Although many ‘qualified' consumers are receiving favorably modified mortgage loan terms due in large part to sufficient monthly income and low debt to income ratios, many homeowners who have lost significant household income since first receiving their mortgage loan are being locked out of the loan modification process, otherwise seen as ‘unqualified'.  Even the government sponsored mortgage loan bailout programs are disqualifying many of these homeowners simply because they would not otherwise qualify under regular government loan-underwriting guidelines.

Thousands of homeowners, whose mortgage loans have been identified as loans that should have never closed in the first place, are being targeted early on in the loan modification process, often suggesting that the homeowners should strongly consider selling their home or refinancing with another mortgage lender, rather than making a bad loan, better.  Requests for loan modifications are given little consideration to these types of mortgage loans, with mortgage lenders offering nothing more than a ‘token' loan modification, one that does little if any good at all in making the monthly mortgage loan payments more affordable or making the mortgage itself more plausible over the life of the loan.

Simply put, banks and mortgage lenders who may have run afoul of traditional mortgage underwriting guidelines, offering high loan to value mortgage loans associated with high debt to income ratios, are simply wanting to keep in that in the past, keeping only those who can meet ‘current' underwriting guidelines, such as debt to income ratios of no more than 38%.  Loan modifications for those homeowners receiving mortgage loans with debt to income ratios upwards of 60% of their gross income are finding the loan modification process to very difficult, especially if their current income has changed from when they first received their mortgage loan.

It is easy to tell a good loan modification from a token loan modification, simply by using the following formulas:

A good mortgage loan modification is one where your mortgage lender offers:

  *Mortgage loan balance is reduced to that of the property's current value

*Convert an Adjustable Rate Mortgage (ARM) into a fixed rate interest loan

*Waive interest and escrow arrearages, including unpaid property taxes and hazard insurance

*A low good faith payment to reinstate a past due loan

A token mortgage loan modification where the mortgage lender offers:

*Add past due interest and/or escrow arrearages to the mortgage loan's current principal balance

*Setting a high interest ARM into a high interest fixed rate mortgage loan

*Increasing a mortgage loan's term from 30 years to as much as 40 years

*A high good faith payment to reinstate a past due loan, often times higher than what a homeowner can reasonably afford to pay at one time.

A good loan modification has improved loan delinquencies tremendously, where in opposition; the token mortgage loan modification has provided disastrous results, often leaving many of these same homeowners in the same quandary they were in even before the loan was modified!

Homes secured by ‘underwater' mortgage loans, that is, where the mortgage loan balance exceeds that of the home's current market value, are without a doubt a huge problem for consumers and industry alike.  Consumers who have suffered financial setbacks such as a job loss or a loss of income, and continue to pay a mortgage loan that is taking a larger portion of their household income that an ordinary would never approve of, should strongly consider their options, including the sale of their home.  Although the option of refinancing a mortgage loan is an option, applicants must still qualify for financing and may have difficulty if their current lender will not consider them to a good risk.

Although homes secured by underwater mortgage loans will likely not sell in a buyer's market such as the down market we are currently experiencing nationwide, a home could sell as a short sale, with many banks and lenders who originally offered a token mortgage loan modification, more than willing to accept a short sale followed by the subsequent debt forgiveness for the remaining principal mortgage loan balance.

The short sale of a home, when properly coordinated, allows the homeowner the potential benefit of full debt forgiveness by their mortgage lender as well as reduced income tax exposure. As always, seek competent, professional advice when seeking answers to questions regarding these specific areas.

The quicker a homeowner accepts the fact that an unaffordable mortgage loan is best resolved by a short sale, the quicker they can re-establish their good standing and purchase another home another home in the near future, secured by a mortgage loan that is affordable and no longer underwater.

For FREE information regarding the benefits of short selling your home, please contact your real estate professional or call (941) 206-6000.

Mike Sikorski, MBA, GRI

Licensed Real Estate Broker

Licensed Mortgage Broker

MLS OF FLORIDA REALTY CORP.

22079 Kimble Avenue

Port Charlotte, Florida 33952

Phone (941) 206-6000

Email: Mike@FloridaRealty.net