short sale approval: FHA Announces Extension of Anti Flipping Waiver Through 2014
- 12/06/12 11:40 AM
Earlier this week I posted a blog that indicated that the GSEs, Fannie Mae and Freddie Mac have loosened their approval criteria by enabling a distressed home seller to participate in a short dale even if they are current on their mortgage. There is additional good news this week as the Federal Housing Administration (FHA) has announced that it will extend its “anti-flipping waiver,” which permits buyers to purchase homes that have already been sold once in the past 90 days. The extension will now carry through to December 31, 2014. The FHA began prohibiting flipping in 2003 in an … (2 comments)
short sale approval: Let's Have Good 'Ole Honest Discussion About HAFA
- 09/25/12 09:54 PM
Let's Have a Good 'Ole Honest Discussion about HAFA. It seems customary these days to read a blog and perhaps members respond. However, sometimes it makes sense to turn it into a discussion in which the collective knowledge and experience of the members can benefit everyone. Sooo, I chose a frequently discussed, but little known four letter word…HAFA. I read a thread on another website and I replied to the thread. The person that posted it was horrified when I provided some details about HAFA. She had no idea about some of the “details”. Folks, this is a Federal program. Did … (0 comments)
short sale approval: Bank of America Announces New Programs for Distressed Home Owners
- 09/12/12 09:29 AM
Bank of America isnow offering "enhanced relocation assistance." Qualified homeowners who initiate a Preapproved Price Short Sale (without an offer) could be eligible to receive $5,000 - $30,000* in relocation assistance and owe no more on their mortgage with the sale of their property. The eligibility will also depend upon which investor owns the obligation. This will be welcome relief for many home owners. As always, the home owner must be careful and read all of the fine print. For example, in some previous programs, the home owner was agreeing to a Deed in Lieu (DIL) if the offer/sale were not accepted by Bank … (0 comments)
short sale approval: Realty Trac Announces List of Best Short Sale Lenders
- 07/02/12 10:15 AM
Realty Trac announces list of best Short Sale Lenders. There certainly is a lot of negative press about short sales and the lenders that participate in them. There never seems to be any positive input and the realty Trac announcement sounds positive. However, according to the RealtyTrac findings, some banks have found that by courting short sale buyers, short sale sellers benefit as well. The data firm recently released a list of its “best major banks to work with when buying short sale homes,” and many analysts believe that these banks are also the best to work with when trying to … (0 comments)
short sale approval: Fast Short Sale Approval?? Ask if the Servicer is Delegated
- 06/26/12 04:49 PM
Fast Short Sale Approval?? Ask if the Servicer is Delegated. When home owners pay their mortgage payments to Bank of America, Wells Fargo, or any of the other "lenders" these entities are actually servicers for the investor that owns the note. In most cases, even though they lent the money they have subsequently sold the loan to an Investor. At this point, all they do is collect the payment, take a fee for this and then transfer the remaining funds to the holder of the loan...the Investor. The investor could be Fannie Mae, Freddie Mac, Pension funds, Insurance companies etc...
When … (1 comments)
short sale approval: Always Helps to Read the Fine Print
- 03/04/12 02:35 AM
Always helps to read the fine print. This is especially true with government documents. For example, on a HUD-1, we typically read the second page first!! LOL I wanted to point something out that is frequently overlooked in HAFA (Home Affordable Foreclosure Alternative) programs. The fine print in a HAFA transaction typically reads that if the lender rejects the HAFA short sale offer, the transaction AUTOMATICALLY converts to a Deed in Lieu (DIL)! For this reason, I have sellers execute a HAFA opt out form that is dated at the time of the purchase contract but not tendered unless … (6 comments)
short sale approval: 3rd Party or In-House Short Sale Negotiations, Part III
- 01/21/12 05:56 AM
3rd Party Short Sale negotiations, Part III. Today, I wanted to discuss the reasons in favor of utilizing in- house 3rd party negotiators. The first reason for an in-house negotiator is that the agent already has established a relationship with the seller and there is a high level of trust. The seller will be comfortable discussing finances with the agent. The agent will also be diligent in pursuit of the approval since they are a professional and their compensation will dependent upon a successful outcome. Agents also have the experience and depth of knowledge to complete a successful approval. Keeping … (3 comments)
short sale approval: 3rd Party Negotiations Part 2
- 01/19/12 04:30 PM
Yesterday, I wrote about whether it is prudent to utilize a 3rd party negotiating firm or perform the services in-house. I presented two legal considerations for the utilization of a 3rd party negotiation firm. Today, I will discuss the practical reasons why it may be prudent to employ a 3td party negotiating firm. According to NAR, the average short sale negotiation takes 27 hours to consummate. I maintain that this number is based on data that is now outdated. I believe that it takes at least 40 hours on average to complete a short sale. In any event, it takes … (2 comments)
short sale approval: 3rd Party Short Sale Negotiation or In-House??
- 01/19/12 05:22 AM
3rd Party Short Sale Negotiation or In-House?? This has certainly become a contemptuous issue…so much so that it is almost political!! LOL I participated in a blog discussion about this last week and the opinions were strong on both sides. Soooo, I thought that we could have a discussion on here to view each other’s’ opinions. I will present the pros and cons and hopefully others wil comment so that we can have a discussion. I personally feel that neither the listing agent nor buyer agent should negotiate the short sale. There are two legal reasons and two practical reasons … (1 comments)
short sale approval: Foreclosure Numbers for Q3 are Artificially High
- 12/30/11 01:46 AM
Foreclosure Numbers for Q3 are Artificially High. Many observers of the real estate market are disturbed by a 20+% increase in foreclosures in the third quarter of 2011. If you merely look at numbers, this can be alarming but frequently (as in this case) the numbers themselves do not portray an accurate and total picture of the environment. The spike in foreclosures was due in large part to the lifting of voluntary and involuntary moratoria on foreclosure filings. The robo-signer debacle and many states caused temporary bans on foreclosure filings. New Jersey for example lifted a ban on foreclosure filings in … (1 comments)
short sale approval: Incest is NOT Best in Real Estate
- 12/06/11 05:07 PM
I had an interesting call today with a short sale agent. The first problem was that I was lead to believe that he was the listing agent. Fifteen minutes into the call, I discover that he is not the listing agent. OK, but this can be a problem because of what transpires. What follows is a textbook situation that can lead to fraud allegations and short sale approval problems. It seems that this particular broker has all of the agency lisitngs placed into his name. He then has another agent that exclusively negotiates the short sale. The rest of the agents … (4 comments)
short sale approval: New GSE Short Sale Guidelines...More Out of Touch B.S. from the Government
- 11/22/11 06:28 AM
According to Realtor Magazine a product of realtor.com, Fannie Mae and Freddie Mac will be implementing new short sale guidelines after the first of the year. It appears that everyone involved in a short sale will be liable for “negligent or intentional misrepresentations in the transaction” and will have to sign affidavits stating that they are handling the transaction to federal standards. The addition of the affidavits to the short sale process is designed to help everyone involved in the short sale “identify potential mortgage fraud and [have] a clearer understanding of the intent of all parties involved in the … (27 comments)
short sale approval: 4th Part in the Series on Why Short Selling Lenders Cannot Enforce Restrictions
- 11/17/11 09:09 AM
A few days ago, I wrote a blog about the four reasons why lender restrictions in short sale addenda are unenforceable. To recap, they are: The Four Components 1. The restrictions are required without legal “consideration” and are therefore invalid; 2. The restrictions are voidable because there is no “privity” of contract; 3. The restrictions cloud title (some states formally prohibit the restrictions); 4. The restrictions violate the spirit and intention of Uniform Commercial Code. Today, I will discuss the fourth component of why the restrictions placed by a short selling lender may be unenforceable. The Uniform Commercial Code is … (2 comments)
1. The restrictions are required without legal “consideration” and are therefore invalid;
2. The restrictions are voidable because there is no “privity” of contract;
3. The restrictions cloud title (some states formally prohibit the restrictions);
4. The restrictions violate the spirit and intention of Uniform Commercial Code.
Today, I will discuss the third component in the four part series. Many if not most of the restrictions … (5 comments)
short sale approval: GMAC No Flip Addendum..Comical but Not Funny
- 08/26/11 12:36 PM
GMAC No Flip Addendum is quite interesting. A variation of the below has been circulating lately. In a relatively short document, there are so many issues raised. First, GMAC is defining what a "flip" is. There is no uniform or legal definiition, so let's call it what it is: an opinion only. Second, what is "inflated" value? If I buy a blow up Elvis on Ebay for $100 and sell it for $102 that is "inflated" value! LOL Third, in real estate, buying and reselling is NOT a short period of time. Thirty days, maybe, but certainly not 90 days. Fourth, … (11 comments)
short sale approval: Often Overlooked Hardship Letter Issue...CRITICAL to Short Sale Success
- 07/29/11 08:07 AM
There has been a lot of discussion regarding hardship letters and their importance in short sale negotiations. However, there is a frequently overlooked aspect of them that is vitally important. The hardship letters will be different in a loan modification than a short sale. You may then ask, “That is true, by why do I care?”
You should care and you need to care – especially if the loan modification was submitted and you do not have a copy of it. The issue is what I refer to as “synchronicity”. If I were a short sale agent, I would … (30 comments)
short sale approval: Scary Outlook for Real Estate Agents and Investors.. A MUST READ!!!
- 07/09/11 12:22 AM
As always, there seems to be good news and bad news for real estate investors. The truly great news is that recent statistics indicate that 37 % of transactions are now completed with investors. This is up from a previous average of 30% (according to NAR). I personally view this as good news since investors are clearly keeping the market alive since they are completing more than one-third of the transactions. The bad news?? Seems that major lenders are continuing to clamp down on investor deals. Wells Fargo has recently released a new standard approval letter than includes a NINETY DAY … (10 comments)
Author Bio: Paddy Deighan earned his Juris Doctorate and PhD Paddy consults with taxpayers in regard to tax liens, tax levies, tax levy, offer in compromise, tax debt, tax settlement
Earlier this week I posted a blog that indicated that the GSEs, Fannie Mae and Freddie Mac have loosened their approval criteria by enabling a distressed home seller to participate in a short dale even if they are current on their mortgage. 
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