attorney: Brick Wall On a Fifth Third Short Sale, Need Help! - 07/18/11 01:03 AM
I have not run into such a brick wall in the hundreds of liens I have negotiated.
5th 3rd prefers ZERO dollars over $4,500 in a short sale now. Any suggestions?
I am helping my client with a short sale on an investment property. Sales price is $175,000. The first mortgage, Citi, is taking a short sale and allocating $4,500 towards the second mortgage, which is 5th 3rd.
5th 3rd wants the entire remaining balance of $40,000 to be repaid by the seller. 5th 3rd wants the seller’s current 2nd mortgage on the investment property to be transferred as a third … (2 comments)

attorney: 5th 3rd prefers ZERO dollars over $4,500 in a short sale now. Any suggestions? - 07/15/11 11:01 AM
I have not run into such a brick wall in the hundreds of liens I have negotiated.
My client is doing a short sale on an investment property. Sales price is $175,000. The first mortgage, Citi, is taking a short sale and allocating $4,500 towards the second mortgage, which is 5th 3rd.
5th 3rd wants the entire remaining balance of $40,000 to be repaid by the seller. 5th 3rd wants the seller’s current 2nd mortgage on the investment property to be transferred as a third mortgage on the seller’s personal residence. The seller may have maximum $5,000 to $10,000 equity in … (6 comments)

attorney: Emotions During a Foreclosure –Fear, Depression, Anger, Embarrassment - 06/05/11 02:50 AM
All this within the strict timeline of a looming foreclosure. Not enough time to become a legal expert or a real estate expert. Who do you ask? Who do you trust?
I am here to tell you that you have options. Good options.
Did you know that lenders accept short sales? In a short sale, the lender lets the house sell for amount SHORT of what you owe. Hence the term SHORT sale.
In an ideal short sale the lender will forgive the shortfall and you will never have to pay it back. That debt forgiveness is issued in writing. You … (11 comments)

attorney: Does the Playground Equipment Stay with the House? How To Avoid Disputes - 05/16/11 04:44 PM
Realtors, buyers and sellers should be very specific about what stays with the house.
In real estate sales sometimes each side can interpret differently what stays with the house and what does not. It’s always better to avoid a dispute than win one.
Disputes can arise over;
Which appliances stay? What is considered attached to the house? Can expensive light fixtures be taken out and replaced with basic fixtures? Is home theater equipment expected to remain? Do sheds and mini barns remain? How about above ground pools and the sand pit left behind? Ponds and the hole left behind? Outdoor playgrounds? … (7 comments)

attorney: Divorce - Mortgage Payments Too High and Owe Too Much to Sell. What To Do? - 05/08/11 02:03 AM
How about getting rid of the mortgage debt altogether via a short sale? Let’s explore.
Dividing the excess home equity in a divorce used to be a primary point of contention. Today it seems that dividing the debt is a primary issue.
Millions of homes nationwide have “underwater mortgages” meaning more owed than the house is worth. Leaving that debt in place is fraught with peril.
What if I deed my house to the other spouse?
Remember, no matter what the divorce agreement says, the parties who originally signed their obligation on the existing mortgage debt remain personally liable to repay … (2 comments)

attorney: I Want to Get a Divorce But I Cannot Because I Can’t Sell My House! - 05/06/11 01:15 AM
Here is what I often hear:
I can't stand my spouse and want to get a divorce. The only thing holding me back is that we have a house worth less than the mortgage and neither one of us can afford mortgage payments by ourselves. Therefore, we would have to sell before getting a divorce. Please, any suggestion will be helpful. I need to get out of this marriage ASAP.
 The answer could very well be a short sale
A short sale can get the house liquidated even if you owe more than the home is worth. In effect, your lender … (9 comments)

attorney: In Foreclosure in Louisville? Filing Chapter 13 Bankruptcy on Your Mortgage May Actually INCREASE Your Mortgage Payment - 10/18/10 09:44 AM
Many short sale clients tell me they filed Chapter 13 bankruptcy and it didn’t help because it caused their payments to go up.
When you file a Chapter 13, you have to continue to make your regular monthly payment, plus an extra monthly amount towards the back payments that you missed prior to the bankruptcy.
Important Disclaimer: I am a short sale Realtor in Louisville, KY, not an attorney. I am writing about my observations of the many clients I helped during and after their Chapter 13 or Chapter 7 bankruptcy. I am not an authority on bankruptcy laws and procedures … (5 comments)

attorney: Intriguing Legal Question About HAFA Short Sale $3,000 Incentive While In Bankruptcy - 09/19/10 03:33 AM
 
Do the sellers keep the $3,000 or do the creditors get it?
Sellers are in Chapter 13 Bankruptcy. We are submitting their short sale as a HAFA short sale. If the HAFA short sale is approved, the lender will provide a $3,000 relocation assistance incentive to the seller. My question is:
Will the sellers be able to keep the $3,000 now or will the bankruptcy court distribute it to the creditors?
Note: There is a concept called Homestead Exemption, but since I’m not a lawyer I don’t know if it applies.
Here's a link to bankruptcy exemptions
I am always … (1 comments)

attorney: If I'm Not on the Loan Will a Short Sale Hurt My Credit? - 08/28/10 01:28 AM
Many times one of the spouses or co-owners of a house is not obligated or liable for the loan and therefore their credit may not be impacted. Sometimes one of the co-owners did not have had good enough credit while the other co-owner had strong enough income and credit to qualify for the loan by himself or herself.
The credit bureaus do not publish their secret formulas, so I cannot give a definitive answer to the question. Important disclosure: I am not a lawyer, a mortgage underwriter, or a credit repair specialist. The above professionals should be consulted to get an … (4 comments)

attorney: Caution: Moving Out Of Your Home In a Short Sale May Cost You Tens Of Thousands Of Dollars - 08/26/10 11:43 PM
This is a little known fact and an alarming truth. There is a natural tendency to flee the house ahead of the foreclosure storm. However, vacating the house may invalidate the seller’s eligibility to have the shortfall on their debt wiped out forever.
OK, so what does that mean?
Step by step:
A short sale happens when the lender allows the seller to sell the house for an amount short of the amount owed. The difference between the total amount owed and what the lender gets when the house sells is called “shortage”, “shortfall” or “deficiency”. In an ideal short sale, … (6 comments)