Dawn Uselding's Blog

Was I Featured or Not?

Dawn Uselding Short Sale Assistant (A New Dawn Real Estate Services, LLC) — Sat, 05 Dec 2009 19:16:56 -0600

I am confused!!

I wrote a post that apparently was featured.. Other people thought it was featured - they congratulated me. On my home page it said-Featured Posts -1. Now I will be honest - I didn't really think much about being Featured until it happened. Then I was excited, told my husband, bragged to my kids.

But the next day, when I expected to see that Gold Star, it said Featured Posts-0. Wow, I didn't know how much I really cared until they took it away. But I thought oh well not a big deal. Then it came back, Featured Posts -1. I went to blogs, clicked on Featured and there I was!! OKAY, now I know my Gold Star will be there. Or NOT. Now I lost the Featured Posts - I'm back to zero.

Please somebody explain. I am so confused! How do featured posts really work?

Here is THE LIST of Lenders participating in MHA, HAMP and HAFA

Dawn Uselding Short Sale Assistant (A New Dawn Real Estate Services, LLC) — Thu, 03 Dec 2009 20:53:12 -0600

Here you go.. Remember lenders can enter into contract to participate in the programs until 12/31/09, so the list may expand.

Name	Web Site	Phone	Service Address	Fax
Allstate Mortgage Loans & Investments, Inc.	http://www.allstateocala.com/	866-351-0200	P.O. 1201, Crystal River, FL 34423	352-351-4557
American Home Mortage Servicing, Inc.	www.ahmsi3.com	877-304-3100	Attn: HAMP Processing 1525 S. Beltline Road Coppell, TX 75019	866-452-1837
AMS Servicing, LLC	www.ams-servicing.com	866-919-5608	3374 Walden Avenue Buffalo, NY 14043	716-204-3875
Aurora Loan Services LLC	https://myauroraloan.com/	800-550-0508	P.O. Box 1706 Scottsbluff, NE 69363-1706	866-517-7975
Bank of America, N.A.	www.bankofamerica.com/mha/	800-669-0102	P.O. Box 940070 Simi Valley, CA 93094-0070	1-800-596-8395
Bank United	http://www.bankunited.com/	877-779-2265
Bay Federal Credit Union	www.bayfed.com	888-422-9333	3333 Clares Street Capitola, CA 95010	831-479-6027
Bayview Loan Servicing, LLC	www.bayviewloanservicing.com	800-457-5105	Attn: Specialized Asset Management 4425 Ponce De Leon Blvd., 5TH Floor Coral Gables, FL 33146	305-646-9943 or 877-360-9593
CCO Mortgage	www.ccomortgage.com	800-234-6002	10561 Telegraph Road Glen Allen, VA 23059	888-777-1631
Carrington Mortgage Services, LLC	www.carringtonms.com	888-267-2417	Attention: Home Retention P.O. Box 54285 Irvine, CA 92619-4285	877-267-1331
Central Florida Educators Federal Credit Union	www.cfefcu.com	800-771-9411	P.O. Box 953878 Lake Mary, Florida 32795-3878 Attn: Real Estate - HAMP Team	407-893-5727
Central Jersey Federal Credit Union	www.cjfcu.org	732-634-0600	380 Berry St Woodbridge NJ 07095	732-726-8709
CitiMortgage, Inc.	www.mortgagehelp.citi.com	866-915-9417	Citi Ham Trial Agreements NTSB 1680, 680 Colwell Blvd Irving, TX 75039	866-989-1356
Citizens First Wholesale Mortgage Co.	https://www.cfwmortgage.com/	800-477-1086	560 Fieldcrest Drive The Villages, FL 32162	352-753-4482
Countrywide Home Loans Servicing LP	http://my.countrywide.com/media/hasp.html	800-669-6607	Bank of America Home Loans P.O. Box 940070 Simi Valley, CA 93094-0070	1-800-596-8395
CUC Mortgage Corporation	www.cucmortgage.com	800-342-4998	P.O. Box 12670 Albany, NY 12212	N/A
DuPage Credit Union	www.dupagecu.com	800-323-2611	Attn: Alternative Loan Solutions P O Box 3930 Naperville, IL 60567	630-305-6030
EMC Mortgage Corporation	http://www.emcmortgagecorp.com	800-723-3004	Regular Mail Chase/EMC Fulfillment Center PO Box 293150 Lewisville, TX 75029 Overnight Mail Chase/EMC Fulfillment Center 2780 Lake Vista Drive Lewisville, TX 75067	917-849-2677
Farmers State Bank	https://farmersstate-oh.com	800-350-2844	11 S. Main St., P.O.Box 801, West Salem, OH 44287	419-853-4730
First Bank	http://www.firstbanks.com	800-760-2265	Attn: HAMP 2030 Sea Level Drive, Ste. 200 Ketchikan, AK 99901	907-228-4421
First Federal Savings and Loan Association of Port Angeles	https://www.ourfirstfed.com/home/home	800-800-1577	Attn: Collection Department PO Box 351 Port Angeles, WA 98362	360-457-5194
First Keystone Bank	www.firstkeystonebank.com	610-892-5163	22 West State Street Media, PA 19063	610-892-5122
Franklin Credit Management Corporation	http://www.franklincredit.com/	800-255-5897	Attn: Loss Mitigation 101 Hudson Street 25th Floor Jersey City, NJ 07302	201-839-4545
Glass City Federal Credit Union	www.glasscityfcu.com	800-837-3595	1340 Arrowhead Drive Maumee, OH 43537	419-887-1099
GMAC Mortgage LLC	www.gmacmortgage.com	800-766-4622	2711 North Haskell Ave., Suite 900 Dallas, TX 75204	866-709-4744
Great Lakes Credit Union	www.glcu.com	800-442-3488
Green Tree Servicing LLC	www.gtservicing.com	800-643-0202	7360 S Kyrene Road T214 Tempe, AZ 85283	877-265-9717
Harleysville National Bank & Trust Company	www.harleysvillebank.com	888-462-2100	483 Main Street, P.O. Box 195 Harleysville, PA 19438	215-256-4903
Hillsdale County National Bank	www.countynationalbank.com	1-517-439-6121	One South Howell Street Hillsdale, MI 49242	1-517-437-3151
HomEq Servicing	www.homeq.com	877-867-7378	P.O. Box 160248 Sacramento, CA 95816-0248	866- 554-5325
Home Financing Center Inc.	www.homefinacingcenter.com	305-777-1171	400 University Drive, Suite 300 Coral Gables, FL.	305-777-9819
Home Loan Services, Inc.	www.viewmyloan.com	800-622-5035	Loan Services P.O. Box 1838 Pittsburgh, PA 15230-1838	412-499-3400
Horicon Bank	www.horiconbank.com	920-485-3080 ext.7310	326 E Lake Street, PO 126 Horicon, WI 53032	920-485-3059
IBM Southeast Employees Federal Credit Union	www.ibmsecu.org	800-873-5100	Attn: Mortgage Modifications PO Box 2850 Kennesaw GA 30156	678-797-6329
IC Federal Credit Union	http://www.iccreditunion.org	800-873-5100	Attn: Judy Kaddy 300 Bemis Road Fitchburg, MA 01420	978-343-4949
J.P. Morgan Chase Bank, NA	www.jpmorganchase.com	877-682-4273	PO Box 469030 Glendale, CO 80246 Attn: Chase Fulfillment Center Overnight Mail 4500 Cherry Creek Drive South, Suite #410 Glendale, CO 80246	917-849-2677
Lake City Bank	www.lakecitybank.com	888-522-2265	ATTN: Candy Littl PO BOX 1387 Warsaw, IN 46581-1387 e	574-267-9128
Lake National Bank	www.lakenationalbank.com	440-205-8100	PO Box 1048 Mentor, Ohio 44061-1048	N/A
Litton Loan Servicing	www.littonloan.com	800-247-9727	4828 Loop Central Drive Houston, TX 77081	713-793-4923
Los Alamos National Bank	www.lanb.com	800-684-5262	1200 Trinity Dr. Los Alamos NM 87544	505-662-0329
Marix Servicing, LLC	www.marixseriving.com	623-249-2241	1925 W. Pinnacle Peak Road Phoeniz, Ax	623-243-9467
Members Mortgage Company, Inc	www.membersmortgage.com	800-316-9790	10 Cedar Street, Suite 11 Woburn, MA 01801	781-376-9452
Mission Federal Credit Union	www.missionfcu.org	800-500-6328	PO Box 919023 San Diego, CA 92121 Attn: Loss Mitigation	858-546-2058
Members Mortgage Company, Inc.			Attn: Alternative Loan Solutions 10 Cedar St STE 11 Woburn, MA 01801	781-376-9452
Metropolitan National Bank	https://www.metbank.com/default.asp	866-796-3876	Attn: Mortgage Department P.O. Box 8010 Little Rock, AR 72203	501-907-8709
MorEquity, Inc.	www.morequity.com	800-628-9324	1) PO Box 3788 Evansville IN 47736-9984 2) 601 NW Second Street, Evansville IN 47708	812-475-7074
Mortgage Center, LLC	www.mortgagecuso.com	866-856-3750	20300 Civic Center Dr, # 403 Southfield, MI 48076	248-799-8556
Mortgage Clearing Corporation	www.mortgageclearing.com	800-727-9043
National City Bank	www.nationalcitymortgage.com	1-800-523-8654	3232 Newmark Drive Miamisburg, OH 45342	937-910-4009
Nationstar Mortgage LLC	www.nationstarmtg.com	888-850-9398	Attn: HAMP 350 Highland Drive Lewisville, TX 75067	214-488-1993
Oakland Municipal Credit Union	www.omcu.com	510-637-6600	250 Frank H. Ogawa Plaza Suite 6301 Oakland , CA 94612	510-238-5227
Ocwen Financial Corporation, Inc.	www.ocwen.com	800-746-2936	16661 Worthington Rd STE 100, West Palm Beach, FL 33409	407-737-6174
OneWest Bank	www.owb.com/mymortgage	800-781-7399	Indymac - 1, 2900 Esperanza Crossing Austin, TX 78758	866-235-2366
ORNL Federal Credit Union	www.ornlfcu.com/	800-676-5328	221 S. Rutgers Avenue Oak Ridge, TN 37830	865-481-5810
PennyMac Loan Services, LLC	www.pnmac.com/index.php	866-545-9070	Attn: Karen Denton 27001 Aguora Road, Suite 350 Calabasas, CA 91301 Attn: Karen Denton	818-224-7510
PNC Bank, National Association	www.pnc.com	888-762-2265	3232 Newmark Drive Miamisburg, OH 45342	937-910-4009
Purdue Employees Federal Credit Union	www.purdeefcu.com	800-627-3328	P.O. Box 1950 West Layette IN 47996-1950	765-497-7477
Qlending, Inc.	www.purdeefcu.com	1-517-439-6121	2600 Douglas Rd, Suite 700 Coral Gables, FL 33134	1-517-437-3151
Quantum Servicing Corporation	www.quantum-servicing.com	813-371-0254	6302 E. MLK Blvd., Suite 300 Tampa, FL 33619	203-447-8001
RG Mortgage Corporation	www.rgmortgage.com/mortgage	888-264-4674	PO Box 362394 San Juan, PR. 00936-2394	787-756-2845
Residential Credit Solutions	https://www.residentialcredit.com/default.aspx	800-737-1192	4282 North Freeway Fort Worth TX 76137	888-775-7250
RoundPoint Mortgage Servicing Corporation	www.roundpointmortgage.com	877-426-8805	P.O. Box 19409 Charlotte, NC 28219-9409	888-364-5558
Saxon Mortgage Services	www.saxononline.com	800-594-8422	Saxon Attention: Home Preservation HMP Documentation Department 4708 Mercantile Drive North Fort Worth, TX 76137	888-240-1885
Schools Financial Credit Union	www.school.org	800-962-0990	C/O Real Estate Department 1485 Response Rd Suite 126 Sacramento CA, 95815	916-569-2047
SEFCU	www.sefcu.com	800-727-3328	700 Patroon Creek Blvd Albany, NY 12206	518-464-5213
Select Portfolio Servicing	www.spservicing.com	888-818-6032	PO BOX:65250 Salt Lake City, UT 84165-0250 3815 S. West Temple Salt Lake City, UT 84107	1-801-293-3936
Servis One Inc.,dba BSI Financial Services, Inc	www.bsifinancial.com	800-327-7861	Attn: HAMP Department P.O. Box 517, 314 S. Franklin Street, Titusville, PA 16354	814-217-1366
ShoreBank	www.sbk.com	800-905-7725	Attn: Kenisha Davis 3401 South King Drive, Chicago, IL 60466	773-420-4501
Stanford Federal Credit Union	www.sfcu.org	888-723-7328	Attn: Tram Le 1860 Embarcadero Road Palo Alto, CA 94303	866-743-3151
Technology Credit Union	www.techcu.com	800-553-0880	2010 N First Street San Jose, CA 95131 Attn: LAD	408-453-8742
United Bank Mortgage Corporation	www.unitedbankofmichigan.com	800-968-1990	900 East Paris SE, Grand Rapids MI 49546	616-559-4631
U.S. Bank National Association	www.usbank.com	888-831-7524	P.O. BOX 20005 OWENSBORO, KY 42304-0005	N/A
Vantium Capital, Inc.	http://www.acqura.net	866-660-5804	6500 International Parkway Suite 1500 Plano, Tx 75093	972-444-3356
Wachovia Mortgage, FSB	www.wachovia.com	800-922-4684	1000 Blue Gentian Road Suite 300 Eagan MN 55121	1-866-359-7363
Wachovia Bank, NA	www.wachovia.com	800-922-4684	1000 Blue Gentian Road Suite 300 Eagan MN 55121	1-866-359-7363
Wells Fargo Bank, NA	www.wellsfargo.com/homeassist	800-678-7986	1000 Blue Gentian Road Suite 300 X9999-01N Eagan MN 55121 Eagan MN 55121	866-359-7363
Wescom Central Credit Union	www.wescom.org	888-493-7266	5601 E. La Palma Avenue Anaheim, CA 92807	626-535-1357
Wilshire Credit Corporation	https://www.wcc.ml.com	888-502-0100	PO Box 8517 Portland, Oregon 97207-8517	888-917-1050
Yadkin Valley Bank	www.yadkinvalleybank.com	336-259-6252	PO Box 96 Pfafftown, NC 27040	336-922-9896

Section Four - Evaluation

Dawn Uselding Short Sale Assistant (A New Dawn Real Estate Services, LLC) — Thu, 03 Dec 2009 07:39:12 -0600

Section Four - Evaluation

This section has a few twists. Deadly deadlines! Once the servicer determines the borrower is eligible for HAFA (based on its own written policy) there are 6 steps the servicers must follow to determine if a SS or DIL will be extended. I want to find out if the policies written by each servicer are open documents. Can we get copies?

1. Borrower Solicitation and Response. If the servicer has not already discussed a SS or DIL, the Servicer MUST proactively notify the borrower in writing of the availability of these options. Now here is the kicker - the borrower has 14 calendar days from the date of notification (the date of the letter) to contact the servicer and request consideration. The communication can be verbal or written. If the borrower does not contact the server within the timeframe- the server has no further obligation to extend a HAFA offer. In other words - they can go straight from here to foreclosure. Also warn your clients to watch what they say.... If at any time the borrower indicates that he or she is not interested in these options - the server has no further obligation to extend a HAFA offer.

2. Expected Recovery through Foreclosure and Disposition. Although not a requirement, the servicer is expected to perform a financial analysis to determine if a SS or DIL is in the best interest of the investor/mortgage insurer. The results any analysis must be retained in the servicing file.

3. Use of Borrower Financial Information. If financial and hardship information is documented and verified for HAMP, no additional financial or hardship assessment is required by HAFA. However, in accordance with investor guidelines, the servicer may request updated financial information to evaluate the borrower. Yeah , no duplication of documentation. They can however request updated financials. If a borrower was evaluated for HAMP based on verbal financial data, the servicer may send the borrower a Short Sale Agreement (SSA) and must require the borrower to deliver the financial information required under HAMP when the borrower returns the executed SSA. Per MHA servicers must verify financial information and obtain a signed hardship affidavit.

4. Property Valuation. The servicers must assess the current value of the property in accordance with the investor's guideline. It is the investors guidelines that dictate what tool is used to assess value, be it BPO's or appraisal's. Watch out though - some mortgage documents allow the cost of the valuation to be added on to the outstanding debt in the event the short sale or DIL doesn't happen.

5. Review of Title. The servicer must review readily available information provided by the borrower, the borrower's credit report, the loan file or other sources to identify subordinate liens and other claims on title. They can also order a title search.

6. Borrower Notice. When a HAFA short sale or DIL is not available, the servicer must communicate this decision in writing to any borrower that requested consideration. The notice must explain why a short sale or DIL under HAFA cannot be offered, provide a toll free telephone number that the customer may call to discuss the decision and otherwise comply with the notice requirements of Supplemental Directive 09-08, Borrower Notices. That means All Borrower Notices must be written in clear, non-technical language, with acronyms and industry terms such as "NPV"(Net Present Value) explained in a manner that is easily understandable. With the exception of the Notice of Incomplete Information, all Borrower Notices must be mailed no later than 10 business days following the date of the servicer's determination.

Section Three - Consideration

Dawn Uselding Short Sale Assistant (A New Dawn Real Estate Services, LLC) — Thu, 03 Dec 2009 00:32:47 -0600

Section Three - HAFA Considerations

This section outlines what a servicer must do to participate in the HAFA program. First they need to have developed a written policy (consistent with Investor guidelines) that describes the basis on which the servicer will offer the HAFA program to borrowers. The servicer can incorporate many factors in this policy, such as local market conditions, timing of pending foreclosures, the severity of the loss involved and even the borrowers motivation and cooperation. Remember they already have entered into an agreement with Fannie Mae to participate in the HAMP program. These policies must be submitted and approved by Fannie Mae. So even though they are writing their own policies, at least each borrower with that servicer will be subject to the same policy. So all short sales under a specific servicer should be treated similarly.

The borrower MUST be evaluated for HAMP before being considered for HAFA. If you qualify for a modification under HAMP you will usually be offered a Trial Period Plan (TPP). The TTP option provides a trial period for the borrower to demonstrate the ability to make payments under the modified terms prior to the effective date of the modification. If the borrower does not complete or defaults on the TTP, the servicer is supposed to assess the other retention or modification programs available. A borrower can refuse a HAMP modification.

You qualify for HAMP if all the following criteria are met:

•· the property is your principle residence

•· mortgage is a 1st non-GSE mortgage originated on or before January 1 2009

•· the mortgage is delinquent or default is reasonably foreseeable You don't have to be delinquent - you need a hardship and reasonable proof of difficulty continuing with payments

•· Current unpaid principal balance $729,750 or less This is for single family property, higher balance allowed for multifamily (2-4 unit)

•· The mortgage payment exceeds 31% of the borrowers gross income

Servicers must consider a borrower for HAFA before referring for foreclosure or allow a pending foreclosure sale to be conducted. Also they must be considered for HAFA in 30 calendar days of the date the borrower: Keep good records!!

•· Doesn't qualify for a modification TPP

•· Doesn't complete a TTP

•· Is delinquent on HAMP modification by missing at least 2 consecutive payments

•· Requests a SS or DIL Repeat - the borrower does not have to accept a HAMP modification

Remember - the borrower must be considered for the HAFA within 30 calendar days and the date and outcome of the HAFA consideration MUST be documented in the servicer's file. This gives us leverage to get the SS moved on in a timely manner.

Section Two - Foreclosure Alternatives

Dawn Uselding Short Sale Assistant (A New Dawn Real Estate Services, LLC) — Wed, 02 Dec 2009 22:50:22 -0600

Section Two - Foreclosure Alternatives

We already covered what a short sale is in the Background Blog. So under this program the servicer will allow the borrower to list the property for less than the full amount owed and the net proceeds from the sale are accepted as a short payoff of the mortgage. The servicer accepts the short payoff in full satisfaction of the total amount due on the first mortgage. Now the short sale must be an arm length transaction. That means a transaction between two otherwise unrelated or affiliated parties. So you can't have your Grandma buy your house for you at a discount.

In the deed-in-lieu (DIL) situation the borrower basically gives the property back to the servicer. The servicer then issues a full satisfaction of the total amount due on the mortgage. To do a DIL the property needs to have no encumbrances except the 1st mortgage. That means no 2nd mortgages, liens or judgments that have attached to the property. Typically a servicer will ask that the property have been marketed and a short attempted before considering a DIL. But that is not written in stone - the servicer may accept a DIL without the borrower first attempting to sell the property if the circumstances are acceptable to the investor.

In either scenario, under HAFA, the servicer must not require a cash contribution or promissory note from the borrower and must forfeit the ability to pursue a deficiency judgment against the borrower. THIS IS BIG!

We are reminded that short sales and DILs are complex transactions (DUH). The HAFA program attempts (my word and italics) to simplify and streamline these transactions.

Some of the new features under HAMP are ...

•· Allows the financial and hardship information collected under HAMP(modification) to be used for the SS and DIL process No more duplicating documentation already done for the loan modification application

•· Allows borrowers to receive pre-approved short sale terms prior to property listing the property This should be interesting. I will post a sample short sale agreement (SSA) in Section 5 blog

•· Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement Capped at 6%

•· Requires that borrowers be fully released from future liability for the debt.

•· Uses standard processes, documents and timeframes. Will post samples with future blogs

•· Provides financial incentives to borrowers, servicers and investors. Covered in the next few sections.

The Supplemental Directive Background - or Section One

Dawn Uselding Short Sale Assistant (A New Dawn Real Estate Services, LLC) — Wed, 02 Dec 2009 21:40:10 -0600

Section One - BACKGROUND

We should all be familiar by now with HAMP (Home Affordable Modification Program). That is the program that was set up to apply uniform loan modification processes to assist eligible borrowers to obtain monthly payments on their 1st mortgages that were affordable. What has happened (and was expected), is that some borrowers do not qualify for, default on or choose not to participate in the modification process.

Hence, HAFA (Home Affordable Foreclosure Alternatives Program). HAFA is part of HAMP. The program provides incentives to servicers and borrowers who choose to go the route of SS (Short Sales) or DIL (Deed-in -Lieu). A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. A deed-in-lieu of foreclosure is a deed instrument in which a mortgagor (i.e. the borrower ) conveys all interest in their property to the mortgagee (i.e. the lender) to satisfy a loan that is in default.

These alternatives reduce the need for the lengthy and expensive foreclosure process. They also help to preserve to condition and value of the property. You know - foreclose and the homeowner may trash the place, or the property is vacant and subject to vandalism and neglect.

This Supplemental Directive has been written to help servicers adopt and implement HAFA. Now this is not for all loans. It only covers 1st mortgages that are not owned or guaranteed by Fannie Mae or Freddie Mac. In other words Non- GSE (Government Sponsored Enterprise) Mortgages.

Here is a little history for you.... The Federal National Mortgage Association (FNMA) (NYSE: FNM), commonly known as Fannie Mae, is a stockholder-owned corporation chartered by Congress in 1968 as a government-sponsored enterprise(GSE), but founded in 1938 during the Great Depression. The corporation's purpose is to purchase and securitize mortgages in order to ensure that funds are consistently available to the institutions that lend money to home buyers. The Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac (NYSE: FRE), is a government sponsored enterprise(GSE) of the United States federal government. The FHLMC was created in 1970 to expand the secondary market for mortgagesin the US. Along with other GSEs, Freddie Mac buys mortgages on the secondary market, pools them, and sells them as mortgage-backed securitiesto investors on the open market. (Thank you Wikipedia).

To participate in HAFA the servicer must execute a servicer participation agreement (SPA) with Fannie Mae in its capacity as financial agent for the United States (as designated by Treasury) on or before December 31, 2009. As a result, servicers already participating in HAMP must follow the guidance set forth in the Supplemental Directive, which provides servicers with the option to determine the extent to which short sales or deeds-in-lieu will be offered under this program. If a loan is a Fannie or Freddie the servicer already is working under the applicable HAFA mandates.

The Directive goes in to effect on April 5, 2010, but those servicers already participating in HAMP can implement HAFA now as long as they can comply with the Reporting Requirements. I will address those requirements in another Blog. The program can be applied to SS and DIL that are fully executed by the borrower and received by the Servicer on or before December 31, 2012.

Journey into SUPPLEMENTAL DIRECTIVE 09-09

Dawn Uselding Short Sale Assistant (A New Dawn Real Estate Services, LLC) — Wed, 02 Dec 2009 19:33:13 -0600

Well, Here we go. My good friend Matt sent me these bullets of the program's key guidelines:

Lenders must respond to Short Sale requests within 10 business days of receipt of the offer package. Is this for approval to participate in a short sale, approval of the actual short sale acceptance, ordering the BPO or just contact saying we have your package?
The seller will be released from all liability for repayment of the mortgage debt. Is this on both the first and any and all subsequent liens?
Subsequently, the seller is entitled to a relocation incentive of $1,500, which will be deducted from the gross sale proceeds at closing. From the gross at closing? So the lenders net will remain the same?
The lender will be paid $1,000 to cover administrative and processing costs for a Short Sale or a deed-in-lieu. Pretty clear cut, don't you think?
The property must be listed with a licensed real estate professional who does regular business in the community where the property is located. This changes some things for investors that never use Realtors!
The lender is prohibited from requiring, as a condition of approving the Short Sale, a reduction in the agreed-upon real estate commission. YEA!!! But what is the actual "agreed- upon" commission?
The investor will be paid a maximum of $1,000 for allowing a total of up to $3,000 in Short Sale proceeds to be distributed to subordinate lien holders, or for allowing payment of up to $3,000 to subordinate lien holders. Wait! We have to divide $3000 between all the subordinate lien holders. What if there is a first and a second along with judgments against the seller that attached to the property. How are we going to do that?

I think this quick bullet breakdown caused me more questions than anything. Well here I go I am diving in and will read each of the sections and blog my findings. Hopefully I have a clearer understanding in a few hours. Join me on my journey into.................

"SUPPLEMENTAL DIRECTIVE 09-09"

Lets Break this Down Into Bite Sized Pieces (New Short Sale Guide Lines)

Dawn Uselding Short Sale Assistant (A New Dawn Real Estate Services, LLC) — Wed, 02 Dec 2009 00:49:14 -0600

Ok, lets break this down into bite sized pieces. Starting tomorrow I will read the all 43 pages of the Supplemental Directive to 09/09 and blog on each section. By the time we are done, we will all understand much better the proposed guidelines announced on Monday.

I can't wait to dive in and find out more about the proposed changes to the foreclosure, loan modification and short sale process. Come with me on this journey by joining this blog.

Check in later tomorrow!

Let's Hope Short Sales Become More Timely

Dawn Uselding Short Sale Assistant (A New Dawn Real Estate Services, LLC) — Tue, 01 Dec 2009 17:58:53 -0600

Well, 21 hours ago The U.S. Treasury set the long-awaited guide lines on a plan for mortgage companies to speed up "short sales" of homes to stem a rising tide of foreclosures. These guide lines address the problems that have often caused Realtors, buyers and sellers to avoid short sales. The new guidelines will set limits on the time it takes a bank to approve an offer. Mortgage servicers will have 10 days to approve or disapprove a request for short sale, and when done the transaction must fully release the borrower from the debt.

It also prohibits mortgage servicing companies from reducing real estate commissions on the sale. This is great news for all those hard working Realtors who have spent months and months on a short sale only to have their commission cut to 3% or 4% to finally close.

The financial incentives for completing short sales will include a $1,000 payment to servicers, and a $1,000 payment to investors who sign off on payments to subordinate lien holders. The Borrowers can also get up to$1,500 in relocation reimbursements.

But the one I like best is that the guide lines caps the aggregate proceeds to subordinate lien holders at $3,000. I have seen to many short sales tanked by greedy 2nd's who think they have the 1st over a barrel. I just closed on a short sale where the 2nd (Chase) wanted 10k on a 20K note. Can you say GREEDY. They actual got 7K, with both Realtors and myself having to kick in over 5K to get the deal done. This was the 4rd buyer on this property. The previous 3 all walked ... BUT THAT IS ANOTHER STORY FOR ANOTHER BLOG.

I myself am going to be eagerly waiting to see how quickly these guidelines are implemented and actually impact the time line of your typical short sale.

Hopefully

Dawn Uselding

Let's Hope Short Sales Become More Timely

Dawn Uselding Short Sale Assistant (A New Dawn Real Estate Services, LLC) — Tue, 01 Dec 2009 16:01:23 -0600

I myself am going to be eagerly waiting to see how quickly these guidelines are implemented and actually impact the time line of your typical short sale.

Hopefully

Dawn Uselding

Acronyms Anyone?

Dawn Uselding Short Sale Assistant (A New Dawn Real Estate Services, LLC) — Wed, 11 Nov 2009 10:53:54 -0600

There are so many acronyms flying around out there that it can be confusing if you don't use them all the time. So, I have taken a few that show up fairly often to help out our non-professionals and professionals alike who read these blogs.

MHA - "Making Home Affordable" program introduced by the Obama Administration on 2/18/09

HASP - "Home Affordability and Stability Program" - Program under MHA for stabilizing home ownership.

HAMP - "Home Affordable Modification Program" program under MHA for modifications. Servicers enter into a contract with MHA and are offered incentives to do loan modifications.

HPDP -"Home Price Decline Protection" program that includes incentives to support modifications in markets hardest hit by falling home price.

HAFA - "Home Affordable Foreclosure Avoidance" program for Short Sales/Deeds-in-Lieu

USPAP -"Uniform Standards of Professional Appraisal Practices" - Appraisals need to be performed in accordance with USPAP under these programs

SS - Short Sale- In a short sale the servicer allows the borrower to sell the property at its current value, even if the sale nets less than the total amount owed on the mortgage.

DIL - "Deeds-in-Lieu" The lender agrees to take back the deed rather than foreclose on the property. Typically a short sale needs to have been attempted before this option is available.

CDPE -"Certified Distressed Property Experts" a designation aquired through training that includes understanding of the new MHA programs.

Hope this helped someone wondering what that acronym means. But remember it takes more than a designation behind your name or knowing the meaning of an acronym to be an "expert". It takes experience! Always check references on any professional you intend to give your business to!

Short Sales - Have you considered the other side?

Dawn Uselding Short Sale Assistant (A New Dawn Real Estate Services, LLC) — Thu, 05 Nov 2009 11:28:57 -0600

Short Sales get a bad rap. I see comments posted all the time about why people hate short sales. "They never work out". "The banks have an evil agenda". Then you have the people that claim they close on every short sale they handle. I don't know which is worse! The hype! The misinformation! The out and out BULL!

Short Sales are lucrative. They meet a need in the population we service. For many homeowners in financial distress, they can be the best option possible. "About half of short sales never close. We see it as a big lost opportunity, and we need to improve the rate we close them,' says David Sunlin, vice president in charge of short sales at Bank of America." This is a true statement - but why? Has anyone considered the other side? Now I am going to make a lot of you ANGRY.

If you don't know how to do a short sale and you won't take the time to get educated or use a company to process your short sales. STOP DOING SHORT SALES!!!! Get out of the way of those of us who do.

I am in the unique position to have insight into both sides of the process. My company does short sales. My Mother worked on the other side as a loss mitigation negotiator. Short sales are a process. Is it a perfect or even fairly proficient process? Well.... that depends on which lender your working with, what negotiator you get assigned too, what kind of loan your working with? I could go on and on!

The bottom line is..short sales are a somewhat complicated and time consuming endeavor. Add to that the high turnover ratio of loss mitigation negotiators and you sometimes have the blind leading the blind. We need to take out the flotsam, you know that stuff that floats around and gets in every bodies way. That would include the new investor who just finished what I call a "Silver Bullet" seminar or boot camp. The are the ones that will be a millionaire in 3 months working 4 hours a day from the deck of a yacht somewhere off the coast of a tropical paradise. OK, maybe I am exaggerating , but you know what I mean. They clog the system with low ball "cash" offers they can't close on unless they get an end buyer. Don't get me wrong, I love investors. About half my clientele are investors, but they close when I get an approval.

The other major clog is RE agents that are attempting to do a short sale but don't have a clue what they are doing or are unwilling to do the necessary follow up . By this I mean the agent that sends in three offers at the same time, doesn't label documents properly, or are too busy to get the paperwork to the lender when it is requested. Again I could go on and on but I will spare you.

My point is each and every piece of paper that gets sent in to the lender needs to be processed. The flotsam gets in the way of real offers that are well prepared. Now, it is true that once you get assigned a negotiator the well prepared package will get the attention deserved. The lenders have been doing a pretty good job in restructuring the systems to be able to dump the flotsam, but still it takes time.

SO, if you want do short sales - go for it! BUT, get educated or get a company that specializes in doing short sales.

One more word to the wise- and this is for Realtors and Homeowners alike. Do your due diligence! Whether you are hiring a Realtor or a company to handle your short sales. Do your homework before you entrust your business to anyone. Make sure they are knowledgeable about short sales. If they are doing these everyday they should be on the front line as far as information on how the packages are processed. This can be invaluable to you.

You should always get references, more than one. And really call them. You would be surprised how many times you are given a reference that isn't even someone they did a short sale for. Make sure they have been in business for at least a year. There are many new "Specialists" out there. They took a class and got a certification. So what - have they done a SUCCESSFUL short sale? That would be the first question I would ask. And if they tell you they close 100% of all short sales - run don't walk, to someone more honest. Also they need to have a comprehensive system for handling your short sale and a way for you to monitor your short sale WITHOUT you having to call them and ask for a progress report.

I am making my introduction!!

Dawn Uselding Short Sale Assistant (A New Dawn Real Estate Services, LLC) — Wed, 09 Jul 2008 20:48:22 -0500

Hi,

My name is Dawn Uselding and I just joined ActiveRain. I am from Wisconsin and am a virtual short sale assistant. I am really new to blogging and the best ways to get yourself seen on the web.

I just did my website recently (boy did I learn alot), and joined AR last week. I have been reading quite a few of the blogs and am learning.

I do have a few questions though? Do posts made here, by that I mean on Active Rain show up in a general web search? If I do a blog how do people know its there? I have done one but it didn't seem to get read.

I know that these may sound like stupid questions to some, but I learn alot by asking stupid questions sometimes.

God Bless

Virtual Short Sale Assistants: To Use or Not to Use?

Dawn Uselding Short Sale Assistant (A New Dawn Real Estate Services, LLC) — Mon, 07 Jul 2008 13:54:23 -0500

Hi,

My name is Dawn Uselding, I am new to ActiveRain and this is my first blog ever. However I am not new to Short Sales. And I am in the position of having insight on both the short sale negotiator and loss mitigation negotiators side.

I have been doing short sales for 8 years. I started in my own business helping rehabbers find and finance properties to rehab. I did this for 2 1/2 years until I caught the eye of an investor. We had been in competition on several properties over the years. At one point he (the investor) called me about a property we had both wanted and informed me the sheriffs sale was in 10 days and he couldn't get the lender to budge. To make a long story short, I closed the deal in 10 days and didn't pay a dime more than he had offered.

A month later after some negotiating on my own behalf I was working for that investor. Now years later I am again venturing out on my own. I am a virtual short sale negotiator. That means I facilate short sales without being in your office. Now why on earth would you need a short sale negotiator? Isn't that cutting your commission? Taking money out of your own pocket? These are questions I hear all the time. Let me tell you why a short sale negotiator is a good investment.

First you have to understand the other side. The Loss Mitigation Negotiator!! I have been blessed to be able to have an inside view into the other sides life. You wonder why it takes so long for them to respond. Well, until just recently my mother was a loss mitigation negotiator for Wells Fargo. Did you realize that they each have a minimum of 50 short sales they are assigned. That's the minimum, they can have over 175.

Another tidbit I bet you didn't know is, they receive bonuses according to how many files they clear (that means refused or closed on). So if you send an incomplete package, your more likely to be refused, than notified that more documentation is needed or a page is missing. Then you have to submit all over again. So making sure you have all the documentation they need is vital. However different lenders and servicers require different packages. Do you know which lender needs two years tax documentation and which needs only one? Which one needs the last three months bank statements and which doesn't need any? These are the details that make the difference between a complete package and an incomplete package. Are you aware of the standard breakdown of acceptable offers? For example:

Fannie Mae 92% net of the appraisal
Freddie Mac 92% net of the appraisal
FHA 82% net of the appraisal
VA 88% net of the appraisal
Conventional 80% net of the appraisal

Those are general guidelines. They are impacted by the investor holding the note, 2nd and 3rd mortgages and many other factors. But they are a good starting point in knowing how good your offer is.

How good are you at negotiating liens? Because, you know the short sale won't be approved until the liens are negotiated. And as a Realtor you know how important the appraisal is. The lender has never seen the property unless it is a local lender. And did you realize that the appraisal is the starting point for negotiations, not what is owed on the property.

Having contacts with Loss Mitigation Negotiators can be huge!! When a short sale package comes through from someone they know and trust it moves to the top of the pile of short sales they are working. And why not, they are more likely to be able to close that deal and get a better bonus.

Another question that I get all the time is - are you licensed? The answer is no, I don't need a license. I am not writing offers or offering legal advise to you or your clients. I deal with you and my job is to present the offer as written with all the needed documentation and then to closely follow up on the offer and to be your liaison with the lender. I ask the right questions to find out what is needed to get the deal done, and get that information to you.

As for payment, I do ask for an upfront retainer. But my payday is at closing. I get paid a 1% fee. My fee is on the estimated HUD as a closing cost and not part of your commission. However my fee is negotiable, by the lender, just like your commission.

So, now hopefully you know a little more about why I think a short sale negotiator is an asset to your business. Especially if you deal with alot of foreclosure properties or you have never done a short sale.

I am looking forward to your comments and would love to hear from you.

Have a blessed day!

Dawn Uselding