louisville ky: Amazing Story - BOA Forgets to Foreclose on a $300,000 Loan for 3 Years - 11/07/10 04:21 AM
This is a true story. The greatest fiction writer could not make this up. We will call the homeowner “Sally” for illustration purposes.
History
Sally files Chapter 7 bankruptcy. Sally includes her $300,000 loan in the bankruptcy and moves out of her Louisville Highlands home. Sally never makes another payment. Loan officer tells Sally she can get a new loan 3 years after bankruptcy. Sally waits 3 years and applies for a loan. Loan officer tells her she doesn’t qualify because she still owns her house with a $300,000 balance. She still owns it after all these years. What the Bankruptcy … (6 comments)

louisville ky: 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)

louisville ky: Do Sellers in Foreclosure Have to Repay The $8,000 Tax Credit? - 10/31/10 01:57 AM
Sadly, some houses purchased with the $8,000 tax credit are now starting to head to short sale and foreclosure. Sellers are concerned they have to repay the $8,000 tax credit.
Sellers should seek an authoritative opinion from a tax attorney or CPA. I am a Realtor and not a professional tax advisor. The information here is general information provided to help sellers understand questions to ask a lawyer or CPA.
This is Part 2 of a 2-part series. See Part 1 at $8,000 Tax Credit Homes Are Starting To Fall Into Foreclosure and Short Sale.
What is the $8,000 Tax Credit … (3 comments)

louisville ky: Hillcrest Avenue Halloween in Louisville KY - 10/30/10 05:08 PM
For twenty years the neighbors of this three block stretch have been outdoing themselves and each other each Halloween. Each year, thousands of excited trick or treaters gawk at the elaborate Halloween decorations. Toddlers, parents and grandparents come from Louisville and beyond to enjoy the good natured scary decorations.
Marvel at twenty foot spider webs. Gawk at the ginormous bridezilla. Jump out of your skin when a body jumps out of a coffin. Quiver in your boots when you spot a skeleton on a hospital bed. Creep out when you reach Area 51. It is infested with aliens from outer space. … (3 comments)

louisville ky: Are Short Sales a Legitimate Solution? The Answer is a Resounding Yes! - 10/28/10 03:40 AM
A short sale can enable an “upside down” house to be sold with no cost to the seller. The lender usually forgives all the shortfall.
Sellers sometimes think if it’s too good to be true then it can’t be true. Is it legit? YES!
Why would the bank forgive tens of thousands of dollars?
Many articles have been published illustrating that save 13% to 26% in a short sale compared to a foreclosure. It is very costly and risky for the banks to foreclose on a house. They do not want to own and operate houses, they want to settle and … (0 comments)

louisville ky: In Foreclosure In Louisville? 16 Questions to Ask Your Short Sale Realtor, Lawyer and CPA - 10/17/10 04:02 AM
A short sale enables the “underwater” seller to sell their house even if more is owed than the house is worth. The lender usually forgives the shortfall so the both the seller and the lender can move on. The lender usually pays all of the sellers closing costs and Realtor commissions so the seller doesn’t have to bring any money to closing.
It is vital that the seller bring in a Realtor who specializes in short sales. There is too much at risk to work with a Realtor who is not highly trained and fully committed to performing short sales for … (4 comments)

louisville ky: 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)

louisville ky: In a Pre Foreclosure The Bullitt County KY Sheriff Can NOT Show Up With No Notice And Throw Your Family Out - 10/13/10 06:02 AM
Many families who are behind on payments live in fear that the Oldham County KY Sheriff will come with no notice and throw their family out of the house. They are also afraid of every knock on the door.
I help many families avoid foreclosure by negotiating a short sale with their lender. I speak with distressed sellers every day. I am acutely aware of these fears.
Homeowners Are Afraid They'll Come Home To A Locked Up Vacant House
Numerous times sellers have asked me or told me that they are afraid that they will come home from work and all … (0 comments)

louisville ky: The Ripple Effect of The Abrupt Halt to Foreclosures - 10/10/10 01:58 AM
The ripple effect of the abrupt halt to foreclosures is far reaching. Here's just a partial list of those affected:
Buyers Contractors who were going to repair the home. This alone has a massive effect on employment. Hard working Americans who build America are abruptly out of work, again. The entire manufacturing and supply chain of material needed to renovate repurchased foreclosed houses. Movers Closing attorneys Appraisers Appliance retailers and wholesalers and manufacturers Neighborhoods suffer more blight for an additional extended period of time. Owners who moved away and have to maintain the house. Some municipalities file criminal complaints against owners … (198 comments)

louisville ky: Does Any One Know Why The Banks Prefer Foreclosures Over Short Sales? - 10/09/10 03:15 AM
Lenders push houses to foreclosure by demanding short sale offers to be 10% to 30% higher than market value.
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 … (16 comments)

louisville ky: Would You Keep Your Home If The Bank Lowered Your Payments? - 10/09/10 02:59 AM

This is one of the first questions I ask a potential short sale client.
I will not lead a homeowner down a short sale path if there is a possibility they can keep their home AND they actually want to stay in the home.
If the sellers are committed to keeping their home, I strongly encourage them to pursue all avenues to get a loan modification.
Most sellers reply that they’re done with the house and with the struggle. The bank would have to dramatically slash their payments, and even then it would many years for the house value to … (3 comments)

louisville ky: 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)

louisville ky: Wordless Wednesday: What A Short Sale IS NOT! - 10/05/10 04:48 PM

This picture was taken outside of a short sale listing. It was the only thing pretty about the short sale. The mortgage was ugly and the tenants destroyed the house. The sellers were nice, though, and had a great attitude.
As always, sellers should put the best short sale real estate agent on their side to turn a negative situation into a positive.
… (2 comments)

louisville ky: 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)

louisville ky: HUD/FHA Short Sale: Homeowner Wants to Stay Current, HUD Says “NO! You Must Default!” - 10/01/10 08:47 AM
 
Case Study in Louisville, KY:
Homeowners want to do the right thing and stay current on payments until the short sale is done.
Homeowners don’t feel right to fall behind.
Homeowners are willing to postpone a critical relocation in order to stay current and not have to pay simultaneous rent and mortgage payments.
Homeowners want to preserve their credit so they can get back into home ownership as soon as possible.
HUD says “NO! You Must Default!”
HUD Says What?
Proof?
I always go to the source document.
Here’s an excerpt from HUD Mortgagee Letter 2008-43:
PFS … (5 comments)

louisville ky: “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)

louisville ky: 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)

louisville ky: “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)

louisville ky: Foreclosure and Loan Modification Notices to Borrowers = Scary and Incomprehensible Gibberish - 09/26/10 04:12 PM
As a short sale Realtor, I have many kitchen table conversations with borrowers in foreclosure. I often get handed a stack of letters and asked to decipher what the lender is saying. Although crystal clear to the professional, to the end consumer the verbiage is often confusing, cryptic, ambiguous and frankly incomprehensible.
Why Not Use Simple English?
Complex banking terminology is used instead of simple English. Borrowers get denial letters for requests they never made. The list goes on.
Many borrowers get so scared and perplexed by the process they just don’t know who to turn to and who to believe.
… (0 comments)

louisville ky: Will There Be a Housing Recovery or an Attitude Adjustment to a Market that Reset Itself? - 09/19/10 05:11 PM
Hundreds of housing predictions flow into the airwaves and the bandwidth every day. Government, universities and financial reporters all have their opinion of the day. The National Association of Realtors (NAR) and the Mortgage Bankers Association (MBA) have their predictions, too.
However, the market is now under the influence of many programs:
HAMP and non-HAMP loan modifications HAFA Short Refi Fallout from the expired $8,000 tax credit program A variety of incentives and deterrents from FHA, FNMA and Freddie Mac These are just a sample of foreclosure avoidance experimental programs from the last 12 months. The government and the banks have … (5 comments)