Ed Clements's (rchmd19) Blog

Mallorca Condos Mission Viejo Ca

Ed Clements (Clements Group) — Mon, 08 Oct 2012 13:34:58 -0700

Mallorca Condos Mission Viejo Ca Mallorca is an exclusive private guard gated community. Mallorca Condos in Mission Viejo Ca consist of 369 condos. It overlooks beautiful Mission Viejo Lake,located in the prestigious city of Mission Viejo, Ca. Mission Viejo Lake is known as the cleanest man made lake in the western United States. Mission Viejo lake is stocked every year with trout, largmouth bass and sun fish. Tagged trout are stocked every winter and prizes are awarded to those who catch them and turn in their tags. Mallorca Condos Mission Viejo Ca amenities include: · 24-hour, 7-day per week, guard gated community · Breathtaking views of the lake, mountains and city lights · Lushly landscaped grounds · Private, sandy beach for swimming with Patio including picnic tables and BBQ grills · Private docks with 72 slips, complete with electric outlets and water · Off-water boat storage · Boating, sailing and windsurfing · Fishing pier · Two community pools and Jacuzzis · Private beach walk and promenade trails Owners of Mallorca Condos Mission Viejo Ca also enjoy the amenities provided by the Lake Mission Viejo Association. · Picnic and barbeque areas for entertaining · Boat rentals/Sailing lessons · Fishing · 2 sandy beaches for summer fun · lake trout and bass · Summer sunset concert series · Snack bar/Lifeguard stations

Buying a Short Sale

Ed Clements (Clements Group) — Fri, 21 Sep 2012 02:05:16 -0700

Buying a Short Sale It's an unfortunate fact in today's Real Estate market, if you are looking for a home chances you will be buying a short sale. I have met many weary buyers who are just sick of making offers on short sales and waiting and waiting and it doesn't go thru. Now, after months of waiting they have to start over again. Has this ever happened to you? Even after all of the advances the lenders have made to improve the short sale process, you still are at the mercy of the listing agent and negotiator either of which could be very knowledgeable and have years of experience or has never completed a short sale. I would guess 50 to 60% of the markets in my area of South Orange County are short sales. With more to come.Since the odds are good you will be buying a short sale here are a few questions you may want to ask the listing agent. 1) How many years experience do you have closing short sales? 2) How many loans are on the home? Are they with the same lender?3) Are there any other liens on the home, mechanics liens, etc.?4) Is there Mortgage Insurance?5) Are the HOA dues current? If not who is going to pay them? (The Buyer)6) Ask your agent to order a Prelim (Preliminary Title Report) so they can see if there are any liens the listing agent forgot to tell you about. Even with a Prelim sometimes something pops up at the last minute.7) If the home is in Foreclosure where is it in the process? Is there a Trustee sale date scheduled? Hopefully these questions will help save you a little time and frustration. Just remember buying a short sale isn't like a standard sale and you are going to have to wait for answers from sellers, the banks, the investors and anyone else involved with the short sale. www.edsellsre.com

Short Sale Agent in Lake Forest

Ed Clements (Clements Group) — Sun, 16 Sep 2012 08:04:08 -0700

Short Sale Agent in Lake Forest The government and many Real Estate experts project a record number of short sales in 2012. I believe they will continue thru 2013 as more people try to do loan modifications and principles reductions in lieu of doing a short sale. The Federal and California Mortgage Debt Relief Acts are set to expire on 12/31/12. The Senate Finance Committee passed passed the Family and Business Tax Cut Certainty Act, which would extend the tax relief through 2013. The Senate is set to vote on it next month. It's bad enough people are losing their homes that they would have to pay tax on the debt relief. My experience as a senior mortgage underwriter and the fact that I process my own short sales means you can be assured I understand the process and know how to work with the negotiators working for the lenders. Your file is not just a number to me it's a person or in most cases a family. The only short sale I ever had denied, was the very first one I tried to do. The offer was for $310,000 the bank at that time (Countrywide) foreclosed on the property and sold it for $315,000. Since then the lenders have improved their processing times and the entire short sale process. Click here to see some of my testimonials. If you need to talk to an Experienced Short Sale Agent in Lake Forest, someone who will give you the answers and information you need to make an educated decision, you can contact me any time, I am here to help. Don't trust your short sale to just any agent you need an experienced short sale agent in Lake Forest. A few examples of short sales I have closed. Owed Sold $1,100,000 $450,000 $425,000 $250,000 $755,000 $505,000 $638,000 $421,000There are too many to list here but, this gives you an idea.

New Fannie Mae Short Sale Guidelines

Ed Clements (Clements Group) — Thu, 23 Aug 2012 02:39:51 -0700

In an effort to stream line short sales Fannie Mae and Freddie Mac announced they are issuing new guidelines to their mortgage servicers that will consolidate existing short sale programs into one standard short sale program.The new Fannie Mae and Freddie Mac Short Sale guidelines, which go into effect Nov. 1 2012, will permit a homeowner with a Fannie Mae or Freddie Mac mortgage to sell their home in a short sale even if they are current on their mortgage if you have an eligible hardship. Some common reasons for borrower hardship's are death, divorce, disability, and distant employment transfer or relocation. Borrowers will now qualify for a short sale if they need to relocate more than 50 miles from their home for a job transfer or new employment opportunity. This does not mean that you can move to get out of your under water home. Fannie Mae and Freddie Mac will waive the right to pursue deficiency judgments in exchange for a financial contribution when a borrower has sufficient income or assets to make cash contributions or sign promissory notes. Servicers will evaluate borrowers for additional capacity to cover the shortfall between the outstanding loan balance and the property sales price as part of approving the short sale.Fannie Mae and Freddie Mac Short Sales Offer special treatment for military personnel with Permanent Change of Station (PCS) orders: Service members who are being relocated will automatically be eligible for short sales, even if they are current on their existing mortgages, and will be under no obligation to contribute funds to cover the shortfall between the outstanding loan balance and the sales price on their homes.Some of the new guidelines: Offer a streamlined short sale approach for borrowers with hardships such as death of a borrower or co-borrower, divorce, disability or relocation for a job without any additional approval from Fannie Mae or Freddie Mac. Expedite short sales for those borrowers who have missed several mortgage payments, have low credit scores and serious financial hardships. The documentation required has been reduced or eliminated. Fannie Mae and Freddie Mac will offer up to $6,000 to second lien holders to expedite a short sale. Servicers are required to review and respond to short sales within 30 days of receipt of a short sale offer. Servicers will have more clear and consistent guidelines making it easier to process and execute short sales. Servicers must provide weekly status updates to the borrower if the offer is still under review after 30 days. Servicers must make and communicate final decisions to the borrower within 60 days of receipt of the offer and complete borrower response package. These borrowers will not be eligible for a new mortgage backed by Fannie Mae or Freddie Mac for at least two years after a short sale. Not sure if Fannie Mae or Freddie Mac owns your loan? Click the following links to find out.Fannie Mae Freddie Mac

Short Sale Agent in Lake Forest Ca

Ed Clements (Clements Group) — Mon, 20 Aug 2012 03:33:52 -0700

Experienced Short Sale Agent in Lake Forest Ca It's no surprise the government and many other Real Estate experts project a record number of short sales in 2012. I believe they will continue thru 2013. I have been successfully closing short sales since Jan. 2007. I don't use 3rd party short sale negotiators. Your file is not just a number, to me it's a person or in most cases a family. Prior to becoming a Realtor in Jan 2006 I worked for 2 mortgage lenders as an underwriter, account manager and account executive. I believe this experience has helped me close over 90% of my short sales. The only short sale I was ever denied was the very first one. The offer was for $310,000 the bank at that time (Countrywide) foreclosed on the property and sold it for $315,000. Since then the lenders have improved their processing times and the entire short sale process. Testimonials. If you need to talk to an Experienced Short Sale Agent in Lake Forest Ca, someone who will give you the answers and information you need to make an educated decision. I am here to help. If you are looking for information on Loan Modifications or other government programs, go to Making Home Affordable website. Experienced Short Sale Agent in Lake Forest Ca

Mortgage Debt Relief Set to Expire

Ed Clements (Clements Group) — Wed, 08 Aug 2012 11:09:35 -0700

Mortgage Debt Forgiveness On Dec 31 2012 the Federal and California Mortgage Debt Forgiveness Acts expire. What happens if they don't extend the expiration dates? Anyone doing a short sale or who is foreclosed on could possibly be liable for the debt relief. What is debt relief? Debt Relief is the difference between what you owe and what the bank accepts in the case of a short sale or the difference in what you owe and how much the bank sells the home for in a foreclosure sale. How is debt relief taxed?The debt relief is added to your income. Example, your yearly income is $50,000 and you received $50,000 in debt relief. Your income for that tax year would be $100,000 and you would be liable for the income tax on that amount. Even if you sell your home before the Debt Relief expires. You still need to prove you are insolvent, where your liabilities exceed your assets. You can check to see if you may be insolvent. I have included this link to the IRS Insolvency Worksheet.http://www.edsellsre.com/Insolvency_Worksheet.pdf I'm not a tax professional and you should always consult a licensed tax professional.

B of A Short Sale Relocation Assistance Program

Ed Clements (Clements Group) — Fri, 20 Jul 2012 07:20:32 -0700

If you qualify you could benefit from the Bank of America Short Sale Relocation Assistance Program. You could receive $5,000 to $30,000 in relocation assistance!For financially distressed homeowners who want to avoid foreclosure. Bank of America is offering qualified homeowners who initiate a Pre-approved Price short sale (without an offer). You 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, depending on the investor involved.This is a limited time offer. So if you are thinking about doing a Short Sale now is the time to find out if you are eligible and if you qualify.Determining your eligibility is easy:The homeowner must participate in one of the Preapproved Price Short Sale Programs, such as: HAFA Home Affordable Foreclosure Alternatives or Bank of America’s Cooperative Short Sale ProgramThese programs have specific investor participation and eligibility criteria. Unfortunately not everyone is going to be eligible but, there is still hope for those homeowners. Those homeowners may still qualify to receive $2,500 – $3,000 in relocation assistance from government- and bank-sponsored programs.Some ImportantFacts to remember• You want to initiate the short sale before you have an offer or you will not qualify for the enhanced relocation assistance funds. • The program is available to non-owner-occupied properties. • You may use the funds to pay off existing second, mechanics, tax liens, etc or to help with relocation expenses. The federal and state debt forgiveness programs are set to expire 12-31-12. Don’t wait to see if you qualify for the B of A Short Sale Relocation Assistance Program. I've heard other lenders offer the same type of programs but aren't advertising it. Ask your agent to ask the bank if they have a similar program.

Short Sale vs Loan Modification

Ed Clements (Clements Group) — Sat, 14 Jul 2012 06:56:24 -0700

Short Sale vs Loan Modification Do you qualify for a Loan Modification or Principle Reduction?If yes, you should do it. If you do not qualify for a Loan Modification or Principle Reduction, see questions below.1) Are you comfortable with your current mortgage payment? 2) Are you confident your income will remain constant? 3) Do you see yourself living in the home for the next 7 to 10 years without having the need to move for employment or to move up or down? If you answered yes to all of the above, you should stay. If you don't qualify for a loan mod or principle reduction and if you can't say yes to any of the questions above and you are underwater, a short sale may be a good option.Now ask yourself this question. How long will you have to wait before you can sell and break even? Everybody knows when you try to get a home loan in today's market you actually have to prove your income factor in today's unemployment rate. Now you have fewer qualified buyers. Fewer qualified buyers' means home prices will eventually level off. They are going to be lower than they were when sub-prime and Alt-A loans artificially inflated home prices. You will have to rely on a combination of home prices increasing and reduction of principle as you make monthly payments. Let's look at the numbers.If you paid $600,000 and had an 80/20 loan 6.275% on the first and 9% on the second your monthly payment including tax and insurance would be $4,710. You do a short sale and rent a house for 2 to 3 years at $2,500 to $2,800 a month. You would have about $2,000 a month difference so you should be able to save $1,000 every month for a down payment. If you buy the same house in 2 years for $480,000 at 4.5% with 3.5% down the payment including tax, insurance and mortgage insurance would be $3,185. That's a difference of $1,525 a month. You could do a lot with that money like save for retirement, kids college, take some great vacations, whatever you want. Short Sale vs Loan Modification, which one works for you?

Lake Forest Sun and Sail Club

Ed Clements (Clements Group) — Sat, 07 Jul 2012 01:54:20 -0700

Lake Forest Sun and Sail Club The Lake Forest Sun and Sail Club has everything to offer you and your family. There are 4 pools family, lap, wading and adult and a spa. The family pool features a diving board but, is only available for use when lifeguards are on duty. The lap pool is used for swim meets and can be used any other time. The wading pool is for small children and the adult pool is 18 and older. During the Summer season there is a snack bar open by near the wading pool. Pools aren't the only thing the Lake Forest Sun and Sail Club have to offer.There is also a spacious, well-equipped Fitness Center, with pool and lake views. Nine lighted tennis courts, three basketball half-courts, sand volleyball courts, and a playground for small children. A 1500-square-foot Youth Center for meetings, recreational and special events. Picnic and barbecue areas. Amphitheater at lakeside, available to rent for private parties, weddings, receptions. A spectacular 4th of July celebration on the Club grounds every year followed by a fireworks show. My website. Inside the clubhouse, every Friday night there is an Adult Lounge upstairs with an outside patio deck, lake view, regulation size pool tables, and big-screen TV. There is a full bar open from 6:00 p.m. to midnight, and on Monday nights during football season. You must be 21 to enter.The clubhouse also offers a Banquet Room downstairs, available to rent for private parties, weddings, receptions, etc., with catering kitchen conveniently located nearby. There are swimming lessons, tennis lessons, fitness boot camp, yoga, taekwondo, the list go on and on there is something for everyone. There is no swimming in the lake but there is plenty of fishing.

Experienced Short Sale Agent in Mission Viejo

Ed Clements (Clements Group) — Sun, 01 Jul 2012 11:25:58 -0700

Experienced Short Sale Agent in Mission Viejo It's no surprise the government and many other Real Estate experts project a record number of short sales in 2012. I believe they will continue thru 2013. Hopefully the powers that be will realize this and extend the tax relief deadline past 12/31/12.It's bad enough people are losing their homes that they would have to pay tax on the debt relief. I have been successfully closing short sales since Jan. 2007. I don't use 3rd party short sale negotiators. Your file is not just a number to me it's a person or in most cases a family. Prior to becoming a Realtor in Jan 2006 I worked for 3 mortgage lenders as an underwriter, account manager and account executive. I believe this experience has helped me close over 90% of my short sales. The only short sale I was ever denied was the very first one. The offer was for $310,000 the bank at that time (Countrywide) foreclosed on the property and sold it for $315,000. Since then the lenders have improved their processing times and the entire short sale process. Click here to see some of my testimonials. If you need to talk to an Experienced Short Sale Agent in Mission Viejo, someone who will give you the answers and information you need to make an educated decision. I am here to help. Many lenders have started giving sellers money to do a short sale. B of A for example has a program where they are giving sellers $2,500 to $30,000. Not everyone will qualify and there are many factors including loan amount, investor, etc. Experienced Short Sale Agent in Mission Viejo

Second lein deficiency judgement in California

Ed Clements (Clements Group) — Thu, 04 Aug 2011 08:49:23 -0700

Second lein deficiency judgement in California If you have a second lien and the holder of the second lien approves your short sale they waive all rights to a deficiency judgment. I was working on a short sale with a second lien that was already approved when the new took effect. The second lien holder subsequently withdrew their approval and wanted more money. I was able to get more money from the first and negotiate a lower amount to the second. The Second lein deficiency judgement in California law is good for Californians. Hopefully the lawmakers will extend the tax relief past 12/31/12 but that is a topic for another blob.

Short Sale Second Mortgages in California

Ed Clements (Clements Group) — Fri, 22 Jul 2011 06:50:25 -0700

As most of you know Gov. Brown signed a bill making it impossible for second lien holders to file a deficiency judgment against a borrower who short sales their home. I asked an attorney if this includes seconds in collection. He replied, it doesn't matter who holds or is servicing the loan they can not pursue a deficiency judgment. The law also states the second lien holder can not ask the borrower to contribute money as a condition of the short sale approval. It does however allow the borrower to offer a settlement. If you are doing a short sale and the second denies the short sale approval you or your seller will have to initiate a settlement with the second. Unless the buyer or agent(s) are willing to contribute which is allowed. Since the beginning I have always tried to get all of my clients into the HAFA program. It takes a little longer but the second lien holder (if they are participating in the HAFA program) already releases any future liability as a condition of the HAFA program. Visit my web site at http://www.edsellsre.com

Another price drop is here

Ed Clements (Clements Group) — Thu, 21 Jul 2011 07:23:18 -0700

Everywhere you look home prices are being reduced as owners try to entice the few buyers out there to look at their home. I wouldn't be surprised to see 10 to 20% drops across Orange County. There is good news as summer approaches the number of buyers should increase. While that may not drive prices up it should at least stabilize the falling prices. Let's face it every time you turn on the news or sign on to the Internet whether it's MSN, Yahoo or Google there is something about the housing market, unemployment or the stock market and most of it is negative. Unemployment is up, house price's are down the stock market is down the politicians failed to come to an agreement on the budget, I could go on and on. I think the market will eventually come back but who knows when. A lot of things need to get better before that happens and I wouldn't expect the prices or volume to be what we had in the early 2000's. The loans that drove that market will most likely not come back. Remember sub-prime and the infamous Stated Loan? The good side to all this is, now is a good time to buy a home. Interest rates all low, housing prices are low and there aren't as many buyers to compete with. Visit my website at http://www.edsellsre.com

Deed for lease, lease back your house

Ed Clements (Clements Group) — Tue, 12 Jul 2011 08:44:00 -0700

Fannie Mae is introducing the Deed-for-Lease Program (D4L), D4L allows qualifying borrowers of properties transferred through Deed-In-Lieu of foreclosure (DIL) to remain in their home for up to 12 months in conjunction with a DIL. To qualify for a DIL you must be able to provide a marketable title, that means there are no other liens on the property, if you have a second it will have to be negotiated before you can do a DIL. Tenant occupied Investment properties also be considered. The borrower is required to provide information about the tenant. You must qualify for the DIL in order to be considered for the D4L. To qualify for D4L, the occupant of the property must show proof they have the ability to pay market rent not to exceed 31 percent of their monthly gross income. A lease agreement will be contingent on successful completion of the DIL. If a lease is finalized, the DIL will not be conditioned on the vacancy of the property. Lender's Prescreen Requirements Only first lien mortgage loan's secured by a one- to four-unit property are eligible, second lien mortgage loans and any other lien such as a mechanics lien are not eligible.The mortgage loan can not be guaranteed or insured by a federal agency (FHA, HUD, VA, or Rural Development). The borrower either resides in the property as a primary residence or has leased the property to a tenant who uses the property as a primary residence. Second homes or vacation homes are not eligible. At least three mortgage payments have been made since the loan was first originated or since the last modification. The borrower can not be more than 12 payments past due on the mortgage loan. The borrower can not be in an active bankruptcy proceeding or a party to any litigation involving the subject property or the mortgage loan. Marketable title is able to be conveyed, only first mortgage lien, all other liens would have to be negotiated before you would have a marketable title (a title insurance policy is required). If there are any subordinate liens secured against the subject property, lien releases must be obtained. The occupant of the property borrower or tenant must have verifiable income. Occupants with no source of income are not eligible. Additional Eligibility Criteria to be Determined by Fannie Mae There are no zoning limitations. No homeowner's association (HOA) rental limitations that would prohibit a D4L. Any repairs required to make the property habitable are considered to be in an acceptable amount based on the property value. The property must be in compliance with local rules and laws or can be brought into compliance within 30 days. The property is not within a target area for any corporate, government or community neighborhood stabilization plan which may need the property as part of the plan for purposes other than residential. The rental income from the property is expected to cover any maintenance and monthly management costs. Occupant Eligibility An internal inspection of the property shows the occupants have been keeping the property in good condition. The occupant must agree to keep the property in good condition, be responsible for regular maintenance, and permit marketing of the property for sale. The number of occupants must comply with local laws and homeowner association rules. Renter's insurance must be obtained if pets are present, if required. Any occupants signing the lease must agree to a credit review. Any occupants over the age of 18 must have an acceptable background check including receiving clearance from the Office of Foreign Assets Control ("OFAC"). There are no signs or reports of illegal activities conducted at the property. The property must be used as a primary residence. For more information contact your lender. Visit my website http://www.edsellsre.com

New HAFA Guidelines, short sales and rental properties

Ed Clements (Clements Group) — Tue, 12 Jul 2011 08:37:46 -0700

Monthly Gross Income Lenders are no longer required to verify a borrower's financial information or to determine if the borrower's total monthly mortgage payment exceeds 31 percent of the borrower's monthly gross income. It is up to the individual lender or investor, they may still ask for financial documents if they want but they don't have to. The Lenders must continue to verify the borrower's hardship by obtaining a signed Hardship Affidavit or Request for Modification and Affidavit (RMA). Vacant Property To be considered for HAFA, the property currently must be or recently must have been the borrower's principal residence. A property that has been vacant or rented for not more than 12 months prior to the date of the Short Sale Agreement (SSA), Alternative Request for Approval of Short Sale (Alternative RASS) or DIL agreement (DIL Agreement) is eligible for HAFA. The borrower must provide documentation that the property was borrower's principal residence prior to relocation and the borrower has not purchased a one- to four-unit property during the 12-month period prior to the date of the SSA, Alternative RASS or DIL Agreement. The borrower's reason for relocation does not need to be connected to re-employment or transfer of employment. Also, there is no longer a minimum distance requirement. Release of Subordinate Liens Servicers are no longer limited by the six percent cap with respect to payments to each subordinate mortgage/lien holder. The total amount shall not exceed the $6,000 aggregate cap. Timing for Issuance of Short Sale Agreement The lender must complete and send to the borrower an SSA no later than 30 calendar days from the date the borrower responds to the servicer's HAFA solicitation. If a borrower requests consideration under HAFA, the servicer must evaluate the borrower's eligibility and, if eligible, complete and send the borrower an SSA no later than 30 calendar days from the date of the borrower's request. Timing for Response to Alternative Request for Approval of Short Sale No more than 30 calendar days from the date of receipt of an executed sales contract, Alternative RASS, and a signed Hardship Affidavit or RMA, the servicer must either approve or disapprove of the sale or provide a counter offer. Alternative Deed-in-Lieu Programs DIL Agreements between lenders and borrowers that provide an option for the borrower to continue to occupy the property on a rental basis (deed-for-lease) or provide an opportunity for the borrower to repurchase the property at some future time are also eligible for financial incentives under HAFA, as long as all other program requirements are met. The borrower relocation incentive of $3,000 may be paid either upon the successful closing of the DIL or at a future time when the borrower vacates or repurchases the property. Conditional DIL agreements that allow a borrower to reinstate the original loan following some period of rental occupancy are not eligible for HAFA incentives. Unless the DIL is final and the borrower no longer has the option of reinstating or modifying the original first mortgage lien. Borrower Notices When a borrower who was not previously evaluated for HAMP requests a short sale or DIL, and that the borrower meets the HAMP eligibility requirements. The lender must notify the borrower verbally or in writing of the availability of HAMP and allow the borrower 14 calendar days from the date of the notification to contact the servicer by verbal or written communication and request consideration for HAMP. Retroactivity Servicers are not required to consider a borrower who was previously determined to be ineligible for HAFA. Servicers may re-evaluate borrowers previously determined to be ineligible for HAFA using the guidance in this Supplemental Directive. Visit my website http://www.edsellsre.com

Wells Fargo Short Sale, Wachovia Short Sale

Ed Clements (Clements Group) — Sat, 18 Jun 2011 08:26:20 -0700

Wells Fargo has changed some of their guidelines to make doing a short sale quicker and easier. Wachovia short sales are even easier than Wells Fargo short sales. It's best to find out if you qualify for the HAFA program before you submit an offer. Some investors will not consider you for HAFA if your agent submits an offer with the short sale package. An important advantage is the bank/investor will tell you the minimum they will accept making it easier to market the property and makes it a lot easier to process your short sale. You don't waste time with offers the lender will not accept. With Wachovia an area manager will either call you or go to your home and speak with you about your hardship. If they feel you have a hardship and it isn't difficult with Wachovia, they issue it to you on the spot. You do not have to supply income/financial documents. The whole process can be completed in less than 60 days. When you do a Wachovia short sale they give you money for relocation I have seen anywhere from $2,500 to $5,000. One client got an IRS tax lien for $8,500 paid off and received $3,000 and it was a rental property. I learned of these chages from the VP of the Short Sale Dept. at Wells Fargo when I attended a seminar presented by Wells fargo.

Short Sale Rental Property

Ed Clements (Clements Group) — Sat, 18 Jun 2011 06:42:57 -0700

There are some new HAFA guidelines that will benefit more people. Along with the current benefits, $3,000 relocation allowance and if the lenders/investors are participating in the HAFA program the full release of any future liability. Unfortunately these guidelines do not apply to loans backed by Fannie Mae, Freddie Mac, FHA or VA. These loans are still eligible for the HAFA program just not these new guidelines. •· Servicers are no longer required to verify a borrower's financial information. The servicer may require undated financial documents but they are not required to do so as a condition of the HAFA program. •· Servicers are no longer required to determine if the sellers total monthly mortgage payment exceeds 31% of their gross monthly income as a condition to do a short sale. The total monthly mortgage payment includes the monthly payment of principal, interest, property taxes, hazard insurance, flood insurance, condominium association fees and homeowner's association fees, as applicable including any escrow payment shortage amounts subject to a repayment plan. •· The property can be vacant but not more than 12 months. It can also be a rental property but not more than 12 months prior to the date of the short sale agreement. •· The seller's reason for relocation does not have to be related to re-employment or transfer of employment. There also is no longer a minimum distance requirement. The only restriction is the seller must not have purchased a one to four unit property 12 months prior to the date of the short sale agreement. •· Servicers may re-evaluate sellers previously determined to be ineligible for HAFA.

Short Sale vs Loan Modification

Ed Clements (Clements Group) — Wed, 15 Jun 2011 13:31:36 -0700

Short Sale, Deed in Lieu, Loan Modification, Foreclosure, HAMP, HAFA in California and what they mean to you. Under the HAFA program you have the option of doing a Short Sale or Deed in Lieu. The lenders are required to give you at least 120 days to market the home and obtain an offer. The lender does not have to give you more time and you are required to follow the guidelines set forth by the lenders. Many lenders are closing short sales sooner than 120 days so be prepared to move. The only thing I have seen that has been extending the short sale time lines is Mortgage Insurance and more likely to kill the deal.A Deed in Lieu is when you sign the deed over to the lender and walk away from the house. The lender has to give you permission to do so and it has to be a clean marketable title. That means no other liens on the property, second mortgage, mechanics lien, taxes are paid, etc. According to current FHA guidelines you can buy another home 2 years after the short sale. If you do a Loan Modification today with current mortgage say $500,000. Homes increase 5% per year it will take you approximately 9 years to break even (it will take you that long to pay down a $500,000 so you could sell at market value), you would have about $3,000 after commissions and other fees. If you Short Sale and buy a new home in 2 years at today's prices plus 5% growth for 2 years. You pay approximately $380,000 with 5% growth per year at the end of the 9 years in the example below you would have approximately $150,000 equity. Short