lenders: In a Divorce Can I Short Sale My House To My Spouse? - 05/09/11 11:09 PM
In a divorce situation there are often contradictory needs that cannot be fulfilled at the same time.
One spouse wants to remain in the house, especially to preserve the children’s habitual residence. However, the new financial situation may render the monthly mortgage payment unaffordable and there may be more owed than the house is worth.
A short sale is viable way to sell the house and get rid of the mortgage. The lender lets the house sell for market value, even if it generates an amount SHORT of the payoff.
This sometimes leads to the question:
Can one spouse short sale … (2 comments)

lenders: 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)

lenders: 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)

lenders: Short Sale Lenders: We can help you avoid owning all this mold, algea, rust and wood rot - 03/04/11 11:59 PM
In a short sale:
The longer the banks take, the sellers are less inclined to subject themselves to the stress.
The longer the banks take, the buyers are less inclined to subject themselves to the uncertainty.
The longer the banks take, the Realtors are less inclined to subject themselves to the wasteful runaround.
The longer the banks take, the buyer's loan officer is less inclined to subject themselves to the frustration.
Mother nature, however, doesn't mind. She continues to work on these houses day and night.
The short sale lenders, the servicers, the mortgage insurance companies and the investors who own … (3 comments)

lenders: 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)

lenders: You Don’t Need Money To Hire a Louisville Short Sale Expert Realtor To Avoid Foreclosure - 11/10/10 12:36 PM
As a general rule, the short sale does not cost the seller anything. Zero out of pocket, seller brings no money to closing.
The Short Sale Lender Accepts Less Than You Owe
In a short sale, your lender accepts and amount SHORT of your payoff, hence the phrase SHORT sale. They accept what the market will pay, regardless of of what you owe them.
The Short Sale Lender Pays Your Closing Costs
When the seller is experiencing a true hardship, the lender recognizes that the seller does not have money on hand to pay closing costs, commissions, property taxes and all … (1 comments)

lenders: Make Your Mortgage Less Scary This Halloween With A Short Sale In Louisville - 10/31/10 03:40 AM
You didn't cause this national crisis. You are in survival mode and working to provide for your family.
Stop letting the bank push you around! You didn’t cause this housing crash! You didn’t cause this lousy job market! Enough with this struggle! You’re doing what you can, every month, every week, every day. You are using survival money to pay your mortgage. And what do you get in return from the banks?
Robo-calls from collectors Threatening and confusing notices Letters from lawyers Loan modification offers that are failing nationwide on a massive scale Sheriff at your door If you can’t handle … (0 comments)

lenders: Why Do Short Sale Lenders Demand Offers 30% Higher Than Market Value? - 10/08/10 04:21 AM
It’s a mystery. We can send the lender the electronic log from the lockbox to prove that 20 or 30 agents showed the house and that we got the highest offer the market will pay.
We can send them comparable sales showing market value. We can show the banks the long days on market and all the comparable listings that never sold.
Somehow the lender overrides reality.
Foreclosures Cause Values To Spiral Down. Short Sales Reduce The Lender's Losses.
The lender dooms the house to foreclosure rather than accepting a logical short sale. That causes more blight in the neighborhood, which … (4 comments)

lenders: 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)

lenders: 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)

lenders: “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)

lenders: 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)

lenders: Short Sales: Lender is Slow, Mold is Fast - 09/12/10 08:57 AM
 
As short sale Realtors, we are problem solvers. We help homeowners avoid foreclosure, and we help lenders reduce their losses.
Lenders Are Slow
Sometimes the lender drags out the short sale processing for 6 to 18 months. They turn down valid short sale offers and send 3 to 4 appraisers out. Lenders fish for a price and it seems like they’re willing to wait a year so they can report that they got their price, even if they net many tens of thousands of dollars less because of holding costs, legal fees and lost income.
Mold Doesn’t Wait For The … (3 comments)

lenders: If The Foreclosure Auction Is Already Scheduled Is It Too Late To Do A Short Sale? - 08/31/10 03:59 AM
There is not a simple single answer, but in general, lenders do not want to own your house or take the risk of owning it. Lenders will often withdraw a house from the foreclosure auction to give it a chance to sell. Please do not wait until the last minute to hire a short sale expert Realtor. Don't worry about the Realtor's fee - the lender pays the Realtor's commission.
However, it is not guaranteed that lenders will automatically postpone an auction. There are many variables:
How soon is the auction scheduled?
If the seller waits until the last few days … (5 comments)

lenders: Louisville Short Sales Q&A: Can the Seller Get Any Money Out of A Short Sale? - 08/30/10 12:21 PM
Can the seller get any money out of a short sale?
FHA and participating HAFA lenders actually give sellers “cash” incentives for completing a short sale. The seller gets a check in the amount of the approved incentive.
FHA Cash Incentive to Short Sale Sellers
If the loan that is being approved for a short sale is an FHA loan, the seller may receive up to $1,000 from HUD. HUD is the acronym for Housing and Urban Development.
The HUD guidelines state as follows: (The word “mortgagor” refers to the borrower who is selling the house)
“HUD will pay up to … (0 comments)