foreclosure: 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)

foreclosure: Avoiding Foreclosure With a Short Sale: The First Meeting With Your Realtor - 10/16/10 03:45 AM
YOU are my client, and the short sale is all about helping YOU avoid foreclosure. It is all about YOU.
Here’s what YOU can expect from our first meeting:
I listen to all YOUR questions and concerns and provide YOU with comprehensive answers. I ask YOU key questions, bringing my years of experience to the table for YOUR benefit. We then customize a strategy, together. There are many variables in a short sale, and we develop a specific plan that fits YOUR circumstances and addresses YOUR wishlist. I make sure to answer all YOUR questions and address every single one of … (2 comments)

foreclosure: Thousands of Foreclosures in Jefferson County KY Can Be Avoided With Short Sales - 10/13/10 11:47 PM
What is a short sale?
The seller avoids foreclosure because the lender accepts an amount SHORT of the amount owed. What's the process?
The lender requires the house to be listed with a Realtor who specializes in short sales. The Realtor procures a buyer who makes an offer. Once the offer is accepted by the seller, the Realtor presents it to the foreclosing lender with additional required documentation. Once the short sale offer is accepted by the lender, the buyer closes on the house. Who pays the Realtor commission?
The short sale lender pays the Realtor's commission so the seller doesn't … (1 comments)

foreclosure: Banks Pushed Short Sales Over The Cliff Into Turbulent Foreclosure Waters - 10/07/10 01:02 AM
Thousands of short sale Realtors nationwide have experienced the exasperation of banks illogically turning down logical short sale offers.
Banks traditionally have pushed valid offers over the cliff with answers such as:
“We don’t care. The PMI company will pay us more.” “We don’t care. FHA will make us whole.” “We don’t care. We’re closing the file.” “We don’t care. That’s our policy.” Time and again, banks turn down short sale offers, then spend many months foreclosing, only to resell the house at a greater loss than the short sale offer.
Now the woes of the banks are being compounded by … (6 comments)

foreclosure: Thousands of Foreclosures in Louisville KY Can Be Avoided With Short Sales - 10/06/10 04:04 AM
What is a short sale?
When the lender accepts an amount SHORT of the amount owed. What's the process?
The lender requires the house to be listed with a Realtor who specializes in short sales. The Realtor procures a buyer who makes an offer. Once the offer is accepted by the seller, the Realtor presents it to the foreclosing lender with additional required documentation. Once the short sale offer is accepted by the lender, the buyer closes on the house. Who pays the Realtor commission?
The short sale lender pays the Realtor's commission so the seller doesn't have to. Thousands of … (1 comments)

foreclosure: Pre Foreclosure Short Sales: The 2nd Mortgage Doom Loop - 10/06/10 12:27 AM
Recent Trend in Short Sales:
2nd position mortgage holder demands $X dollars more than the 1st mortgage holder is willing to allocate 1st position mortgage holder is unwilling to allocate more Seller doesn’t have the extra money to bring to closing Doom Loop Scenario #1
Buyer is unwilling or unable to pay the extra $X dollars on the seller’s behalf Buyer walks. Takes time to get a replacement buyer, the market continues to decline. 1st mortgage company loses much more than the $X dollars they withheld from the 2nd. Doom Loop Scenario #2
Buyer is willing to pay the extra $X … (2 comments)

foreclosure: Short Sales: Even When You Get a Green Light- You Still Have To Look Both Ways - 10/03/10 02:52 AM
Even when the lender issues the coveted short sale acceptance letter there are plenty of perils ahead.
In a short sale the lender accepts an amount SHORT of the full payoff, thereby enabling the seller to avoid foreclosure. Once the seller’s Realtor navigates the process, the lender issues a “short sale acceptance letter.” The buyer is then green lighted to proceed to closing.
At this point, however, there are still many things that can go wrong. Here are just a few examples:
Seller Related Problems
Last minute title problems – liens and judgments may cloud the title. Since there is no … (6 comments)

foreclosure: Should I Rent My House Out To Avoid Foreclosure? Great Risks, Few Benefits - 10/02/10 05:04 AM
When financial hardship strikes, the natural instinct is to save your home, for many reasons:
You want to meet your obligations and fulfill your promises Your family lives in the home You want to move when it fits your life plan You put a lot of planning, time and money into the house You want to avoid the stress and embarrassment of a foreclosure One of the ways to make the payments affordable and stay in the home is a loan modification. In an ideal loan mod the bank lowers your interest rate and lowers your payment.
If the loan modification … (3 comments)

foreclosure: “I’m in Foreclosure and Can’t Afford a Realtor Commission.” What to do? - 09/30/10 06:47 AM
Sellers who are in foreclosure cannot afford afford a Realtor commission. This is a common predicament playing out all over the country and definitely right here in Louisville Kentucky. Homeowners need to sell but don’t have money to pay a real estate agent.
You Can Sell Your House and Your Lender Will Pay The Commission On Your Behalf
Banks let you sell your house for whatever it brings, and your foreclosing lender will pay your Realtor commission so you won’t have to. This happens every day, all day long.
It is called a “short sale” because the lender accepts an amount … (3 comments)

foreclosure: In a Short Sale “Is it better that I move out?” - 09/30/10 12:56 AM
In a Short Sale “Is it better that I move out?”
Sellers ask this all the time. The answer is the seller can stay in the house all the way up to the closing of the sale to the new buyer.
There are actually many questions behind this question:
Question: Will the bank be angry that I’m living in the house without paying?
Answer: The bank realizes that many borrowers can’t pay. That’s why they have the short sale program. You didn't create this housing slump or job market crisis.
Question: Does the bank want me to move out because … (4 comments)

foreclosure: I’m In Foreclosure and Need A Real Estate Agent to Sell My House In Louisville, KY - 09/29/10 04:09 PM
Selling a house to beat foreclosure means you need the best Realtor who can move fast!
The Realtor must be:
Compassionate and Caring Highly trained Highly organized and has systems in place Must have staff to quickly and efficiently handle all calls and tasks Experienced Track record of many pre foreclosure successes Local to Louisville, Kentucky In many cases a pre foreclosure sale needs to be a short sale. In a short sale the foreclosing lender accepts an amount SHORT of what is owed, and typically forgives the shortage. You must find a short sale expert Realtor.
Time is of the … (2 comments)

foreclosure: “I Can Finally Get a Good Night’s Sleep” - What a Pre Foreclosure Short Sale Can Do For You - 09/28/10 11:50 PM
"The short sale pulled me out of this housing hole.”
“I’m glad I had someone on my side.”
“People said it was too good to be true but now I owe not a thing.”
“It restored my dignity.”
There is hope and there are options.
If you are behind on payments you are undoubtedly under tremendous stress.
Imagine the future without this overwhelming debt in your life. Banks accept “short sales” all the time. In a short sale, the lender accepts an amount SHORT of what is owed. In most cases the shortfall is forgiven, in writing. Your lender pays the … (1 comments)

foreclosure: Bruised But Unbroken – How a Short Sale Can Help You Avoid Foreclosure In Louisville - 09/27/10 07:46 AM
It is obviously extremely stressful when you just cannot make the mortgage payments any longer. There is also fear of the unknown.
You Have Options
You may be bruised but please don’t let this break you. There is help, even if you think your house is unsellable, and even if you think you cannot afford a Realtor.
Your Lender Does Not Want Your House - They Want To Avoid Foreclosure, Too
The foreclosing lender does not want to own your house. It’s too risky and too expensive for them to own, operate and sell your house from 1,000 miles away. The … (0 comments)

foreclosure: The Most Important Questions To Ask A Seller In Foreclosure - 09/25/10 02:14 AM
The three most important questions to the seller are:
What are your fears and concerns? What would you like to see happen? What questions do you have for me? Yes, these are very open ended questions. They will clear the way for the seller to ask us the questions that most concern them. The sellers have been tossing and turning and have many pent up questions and worries.
Short Sales Are All About Providing A Solution For The Seller
We are short sale Realtors, and the sellers bring us into their lives to help them with a solution to a major … (0 comments)

foreclosure: 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)

foreclosure: Do I Have to Pay Taxes on a Short Sale? The 1099-C, H.R. 3648 and the Insolvency Rule - 09/18/10 05:07 PM
Three possible answers to the question: Yes, No, Maybe.
Short sale listing agents should always disclose to their clients there is a possibility they will have to pay taxes on any forgiven debt.
Sellers are strongly encouraged to consult with professional legal and tax advisers.
Realtors who help clients avoid foreclosure should be knowledgeable of tax issues related to a short sale. The Realtor should disclose and direct the sellers to ask a CPA or tax attorney about the following issues:
1. What is a 1099-c (1099 income resulting from cancellation of debt)
2. What is the mortgage forgiveness act H.R. … (3 comments)

foreclosure: Short Sales and Foreclosures In Low Income, Low Priced, High Crime Areas - 09/18/10 01:53 AM
In Louisville there is a sizable number of houses that are priced under $10,000. Not a typo – that is under ten thousand dollars. The banks make it extremely hard to perform a short sale in this price range.
Massive Amounts of Devalued Properties
According to the MLS, two hundred and thirty three (233) Louisville properties are either ACTIVE, PENDING or SOLD under $10,000 in the last 12 months. This does not include expired or cancelled listings.
When you raise the upper price limit to $20,000, the number of listings goes up to 521.
Lenders are Reluctant to Approve Short … (0 comments)

foreclosure: Banks Turn Down Short Sales Then Sit On The House for 6 to 12 Months Before Listing as REO - 09/18/10 01:03 AM
A high-volume REO agent told me this week that the banks often wait 6 to 12 months after the foreclosure sale before they list the house.
Lenders Rack Up Great Losses With A Full Foreclosure
What are the lender’s holding costs during that period? What are the direct and incidental costs? What about the blight and devaluation of the neighborhood prices caused by vacant houses? Devaluation causes more houses to sell for less, causing the cycle of foreclosures to intensify, causing the banks even more losses on future foreclosures.
Lenders Turn Down Short Sales
On the other hand, during the … (7 comments)

foreclosure: Short Sales: Banks Drag Their Feet Then Close the File For Inactivity - 09/17/10 12:47 AM
Common Occurrence 1:  
Problem: Bank’s loss mitigation department tells Realtor the file will take 3 weeks to be assigned to the next person. They instruct the Realtor not to call until then. Realtor calls three weeks later and is told the file is closed for inactivity.
Remedy: Call at least once a week anyway. Tell the loss mit person to notate the file that you called. Keep the file alive even if the lender is trigger happy to close it.
Common Occurrence 2:  
Problem: Bank drags their feet for months then claims the seller’s financials are outdated. Duhh! … (6 comments)

foreclosure: Medical Bills, Foreclosure and Short Sales in Louisville - 09/16/10 01:20 AM
Health problems and medical bills are a major cause of foreclosure.
As a short sale Realtor in Louisville, I help many homeowners avoid foreclosure. In many cases, the hardship that caused the payments to fall behind is directly related to health issues.
Health issues often cause job loss or job reduction. Homeowners are faced with a choice; pay the medical bills or pay the mortgage.
In the past, homeowners could sell their house at a profit. The sale would simultaneously get rid of the mortgage payment and put cash in their pocket.
Can't Sell the House
In today’s market that is … (0 comments)

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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