foreclosure: Short Sale When Only One Spouse Is On The Loan - 05/11/11 12:46 AM
Sometimes loans were made with only one spouse on the loan. What happens to the non-borrower spouse when a house goes into foreclosure or sells at a short sale?
If someone is not on the loan a short sale should not impact their credit or ability to obtain future loans. This should be verified with an attorney and a mortgage broker.
First of all, how did it happen that only one spouse is on the loan? Possibilities include;
One spouse had better credit than the other and enough income to qualify for the loan. One spouse already owned the house and … (1 comments)

foreclosure: 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)

foreclosure: The Foreclosing Lender In a Short Sale Can Counteroffer Whatever They Want To - 05/04/11 11:47 PM
There are two stages of acceptance in a short sale. First the seller accepts the buyer’s offer, then the short sale lender has to accept the offer. The lender may counter in many ways;
There is a possibility that the lender will respond with a counter offer HIGHER than the price that the Buyer and Seller agreed upon.  Since the lender rarely advises on a list price prior to the listing, there is even a possibility that the lender will respond with a counter offer HIGHER THAN LIST PRICE. In fact, the lender often responds with a counter offer HIGHER THAN … (4 comments)

foreclosure: When a Short Sale Gets Your Debt Forgiven - 05/02/11 12:09 AM
One of the biggest fears of borrowers facing foreclosure is the bank’s right to pursue them for the difference after the foreclosure is done.
A Short Sale May Relieve You Of All Obligation on the Debt
Many borrowers do not realize that a short sale could lead to full forgiveness of the deficiency. That means the borrower can put the debt behind them and never have to worry about paying any of it back.
In a short sale the lender lets the house sell for an amount SHORT of the payoff.
A short sale provides the possibility of “forgiven debt.” If … (3 comments)

foreclosure: What If The Buyer Can’t Close On Time On A Louisville Short Sale? - 04/25/11 10:56 PM
Possible consequences of a buyer missing the closing deadline on a short sale:
The foreclosing lender may:
(1) raise the purchase price, or
(2) deny an extension and cancel the entire agreement with no recourse for the buyer, or
(3) delay approval of an extension by weeks or months, or
(4) push the property to get sold and lost at the foreclosure auction, or
(5) approve an extension to allow the buyer to close with no change of price or terms.
The paradox is the foreclosing lender can drag out their approval for months, but when they give an approval they … (17 comments)

foreclosure: Imagine yourself without crushing mortgage debt - A short sale in Louisville can get you there - 04/24/11 09:28 PM
You bought a house some years ago. Paid market value, just like everyone else.
Life happened; Job transfer, job loss, illness, divorce.
You tried to sell your house but couldn’t because values collapsed, no fault of your own.
You now owe tens of thousands of dollars more than the house is worth.
What to do? Consider a short sale, it is common nationwide and in Louisville.
What is a short sale?
A short sale occurs when a house sells for an amount short of the full amount owed to the lender. Hence the word “short” in short sale.
What happens to … (1 comments)

foreclosure: Can the Seller Talk To Their Lender While Their Realtor Is Negotiating The Short Sale? - 04/02/11 03:51 AM
Can the seller talk to their foreclosing lender while we, their Realtor team, are negotiating a short sale for them?
Absolutely yes!
As your short sale Realtors in Louisville, we are representing to your lender the facts of your hardship, and providing them all the supporting information they need to make a decision on your short sale. It is a lengthy and complex process.
We Want To Reduce Your Fear Of The Unknown
We know that it is stressful to be “upside down” on your mortgage and to be struggling with payments. Our goal is to help you avoid foreclosure and … (2 comments)

foreclosure: Another Loan Modification Dooms Seller to Foreclosure Unnecessarily - 03/08/11 04:24 AM
Lender turns down loan modification and refuses to postpone the foreclosure auction to allow for a short sale. The lender hurts themselves and the seller who acted responsibly.
The seller contacted me many months ago to learn about the short sale option to avoid foreclosure. The lender, however, enticed him into a applying for loan modification.
Loan Modification Denied. No Time To Do A Short Sale.
Recently the seller contacted me that he was turned down for the loan modification, and asked that I start the short sale process, which I did. Shortly thereafter, the seller was given a notice that … (7 comments)

foreclosure: Seller's Responsibilities In A Short Sale - 03/01/11 02:27 PM
Your Realtor is diligently helping you with the short sale of your house. The Realtor will be doing the "heavy lifting" with your lenders. However, it is vital that you, the seller, provide assistance when necessary.
Help your Realtor help you.
Your Realtor will be performing dozens or hundreds of extra tasks that don't exist in a non short sale transaction.
The seller needs to provide timely response in the following areas:
Getting financial documents from you that the lender requires. Price drops. If the house is not generating many calls or requests for showings, or if there were many … (3 comments)

foreclosure: Can I Short Sale My House With Structural Damage? - 02/26/11 03:01 AM
Yes, you can short sale your house even with structural damage. Indeed, the lender may be more inclined to settle your loan because of the structural damage.
The bank does not want to own your house.
But who will want to buy my house with structural problems?
Someone will. Price fixes everything. The price will have to come down as an incentive for someone to take the risk and do the work.
But I owe too much on my house...
Once we, your short sale Realtors, submit the buyer’s offer to your lender for approval they will send an appraiser to … (19 comments)

foreclosure: Who Falls Behind On Their Mortgage Payments? - 02/21/11 12:22 AM
Who Falls Behind On Their Mortgage Payments?
Good, honest, hardworking people!
Overwhelmed by other life events, such as health reasons or divorce. Adjustable rates crushing them. Vanishing equity but need to sell. Business owners whose businesses got ground up in this unrelenting economy. Homeowners whose jobs got eliminated. Rising prices of consumer goods taking from the family budget. Gasoline prices ravaging the family budget. Landlords with non-paying tenants who milk the system and destroy the property.
Sellers in foreclosure should be treated with the utmost respect. Many had perfect credit before they got caught in this national foreclosure crisis.
A … (5 comments)

foreclosure: Foreclosure, Short Sale, Credit and Employment - 02/20/11 07:31 AM
Unfortunately some employers consider bad credit as a predictor of effectiveness and trustworthiness.
How Can A Short Sale Benefit You Vs. a Foreclosure?
Interviewers are asking candidates for authorization to contact the three major credit reporting bureaus. Candidates are worried bad credit will cost them their job.
Even though a short sale hurts the seller's credit, there still are differences;
In a foreclosure, the owner LOSES their house.
The benefit of a short sale: In a short sale, the owner SELLS their house by developing a solution with the lender that is more beneficial to the lender than a foreclosure.
A … (5 comments)

foreclosure: Flirtation Walk and Short Sales In Louisville KY - 02/16/11 04:46 AM
When I drove by this street sign it reminded of all the people I help on a daily basis. I successfully help many divorcing couples in Louisville KY avoid foreclosure and bankruptcy by negotiating a short sale of their home with their lender. The house sells for an amount SHORT of what they owe so they can move on with their seperate lives.
The lender usually forgives the shortfall by waiving their right to pursue the borrowers for the deficiency.
Sometimes the path to a short sale, foreclosure or bankruptcy starts at this street sign: Flirtation Walk.


foreclosure: What Should I Do? Not a Fixer Upper, Not a Gorgeous House, Sorta In-Between - 02/15/11 12:43 AM
If a house is a fixer upper it can be priced accordingly. If a house is gorgeous it can be priced accordingly. There is a market for both types. It's the in-between houses that are harder to sell.
Investors and do-it-yourself warriors love fixer uppers. Almost everyone loves a gorgeous house, especially with today's low prices.
But what about the properties that are in OK shape but need a lot of cosmetics. Nothing is really broken but the house is a little tired. There are many houses like that in Louisville KY.
Maybe needs all new carpeting. Maybe has an aging … (3 comments)

foreclosure: Seller says: I tried loan modification, they screwed me, they had their chance and blew it - 02/09/11 10:07 PM
Borrowers are angry and bewildered by the loan modification process. Many of my short sale clients previously tried to modify their loan. They were plagued with denials, large lump sum payments, HIGHER payments instead of lower payments, and other tribulations.
Just the other day a seller who I am helping with a short sale told me “I tried a loan modification, they screwed me, they had their chance and blew it.”
Borrowers are trying to do the right thing for themselves and for the bank
A successful loan modification:
Keeps the borrower in the home Reduces the bank’s losses Helps the … (131 comments)

foreclosure: Sequence of events in a short sale - 02/04/11 02:17 PM
Sequence of events in a short sale
·    Gather about a dozen documents
·    Submit to the short sale lender
·    Wait
·    Follow Up
·    Wait
·    Follow Up
·    Escalate
·    Wait
·    Repeat
Although the cycle described above seems imaginary and cynical, it actually is a true description of the process.
So, if you are a short sale seller or short sale buyer, please know that your case is not unique, it is happening to thousands of others, every day, all day long.

foreclosure: Why Are So Many Short Sale Houses Vacant? - 02/01/11 12:14 AM
A buyer asked me a common sense question: “Why are so many short sale houses vacant? Why doesn’t the bank encourage the seller to stay so the house will stay maintained and protected?”
He had just walked through a Louisville vacant house that the bank had neglected to winterize. He claimed the water pipes had burst and there were icicles inside the house.
The banks usually don’t expect the sellers to make payments while they continue to occupy the house during the short sale. Sellers can stay in the house during their time of dire financial need.
Sellers do not … (7 comments)

foreclosure: I’m Falling Behind on My Louisville House Payments – When Should I Start The Short Sale? - 01/30/11 02:54 PM
Simple answer: Start Now!
Why start now?
The longer you wait the closer you get to losing your house at the foreclosure sale.
On the other hand, a short sale enables you to sell your house with dignity, rather than lose your house. You don’t want to gamble and wait too long and have your lender deny foreclosure avoidance options because it’s too close to the auction date.
What is a short sale?
A short sale occurs when a house sells for an amount short of the full amount amount owed to the lender. Hence the word “short” in short sale. … (0 comments)

foreclosure: Hanging On Too Long When Can’t Afford Payments – Avoid Foreclosure With a Short Sale in Louisville - 01/27/11 06:10 PM
When the house becomes a money pit liability, emotions must be set aside and the house must be liquidated in the least damaging way possible. Running up more debt or using medicine money and food money to make the mortgage payments just doesn’t work out in the long run.
Rather than let a foreclosure devastate you financially and emotionally, a short sale is usually the best option.
What is a short sale?
A short sale occurs when a house sells for an amount short of the full amount owed to the lender. Hence the word “short” in short sale.
What … (4 comments)

foreclosure: Wishful Thinking - Did the Banks Make a 2011 New Years Resolution to Mitigate Their Losses - 01/01/11 02:10 AM
Since countless studies indicate that banks lose 15% to 26% more on a foreclosure than on a short sale, do you think the banks resolved to expedite short sales in 2011?
Or will they say they need to be chained to inaccurate data and turn down short sales because of a $2,000 difference so they can spend $20,000 more on an abandoned, mold growing, vandalism prone property so they can get the extra $2,000 a year later when they dump it as a bank owned REO?
Oh, to be a fly on the wall of their boardroom.

Dave Halpern, Louisville Short Sale Expert (Keller Williams Realty Louisville East (502) 664-7827) Rainmaker large

Dave Halpern

Louisville Short Sale Expert

Louisville, KY

More about me…

Keller Williams Realty Louisville East (502) 664-7827

Address: 1230 S. Hurstbourne Lane, Louisville, KY, 40222

Office: (502) 664-7827

Mobile: (502) 664-7827

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