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Philadelphia Short Sales: When a Loan Modification does not work - Short Sale Success in Mayfair !

By The Somers Team

Real Estate Agent with The Somers Team at KW Philadelphia

August 22, 2009 11:38 PM

Philadelphia Short Sales: When a Loan Modification does not work - Short Sale Success in Mayfair !

Philadelphia Short Sales: Every short sale listing we take on is a different experience as you really will never know what will transpire. What you do know is to concentrate on what is within your control to maximize the success of your listing selling and then being approved by the bank and closing. There was a terrific featured post recently here on Active Rain called 10 Reasons Why Your Short Sale Will Not Close by Noel Padilla which is a must read.

In any event, our recent success story relates to struggling home owners in Mayfair who were almost out of options. They received Counseling Services from the City of Philadelphia in addition to paying other Loan Modification companies with no success whatsoever. Finally, they found out that a short sale was an option to them. Sadly, this was not communicated to them in the beginning from all these other great loan modification companies as they were the perfect candidate for a short sale. So they googled a few words for a Philadelphia Short Sale Expert and found us.

It was not the easiest short sale as their bank was tough to deal with and our second buyer had to switch mortgage companies for her loan to go through. The seller's bank counter-offered the first deal we had accepted and the buyer decided to pass. No big deal as we now knew what the number was that the bank was willing to accept.

Within a week we wrapped up another deal that initially appeared like a no-brainer, 20 percent down, no inspections, great buyer with fantastic credit, income and assets. The buyer was trying to do her loan through Bank of America who called for all sorts of repairs on the property and for a home inspection to be done even though the appraisal came in $4,000 above the contract price. The repairs that were called for were just ludicrous. What do you do ? I told the buyers agent to run from her mortgage company and recommended a local mortgage broker with Cardinal Financial. They still wanted to try Bank of America because "their rate was lower". Thus, the buyer paid for a home inspection, gave the report to Bank of America (very few things came up) and they still would not remove their conditions. A waste of money ! Thus, after coming close to terminating the deal and finding another buyer, they did decide to go with Cardinal Financial who got the deal closed 2 weeks later. Everyone was happy !

At settlement our sellers said, "Boy, you guys are good ! If we only knew to have called you first."

Short Sales do work ! For us, our ratio is still 100 PERCENT in the last 3 years !! How cool is that ?

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Fernando Herboso - Associate Broker MD, & VA

Maxus Realty Group of Samson Properties - Clarksburg, MD

301-246-0001 Serving Maryland, DC and Northern VA

Having a ratio of 100% success in the last 3 years is simply amazing. .you should write a course on it

Aug 22, 2009 11:42 PM

The Somers Team

The Somers Team at KW Philadelphia - Philadelphia, PA

Delivering Real Estate Happiness

Fernando - Thanks !! Am thinking about it ! Not sure where to begin though !! So for now, will keep blogging about them : )

Aug 22, 2009 11:45 PM

Sally K. & David L. Hanson

EXP Realty 414-525-0563 - Brookfield, WI

WI Real Estate Agents - Luxury - Divorce

Hmmmm...everywhere is different...we have only had one that was a "fix it" challenge and never...knock on every tree and board I can find...have had any lender ask to see an inspection...hope it stays that way...they can read far more into that than there is...grrr....Blog on ! good job !

Aug 23, 2009 12:24 AM

The Somers Team

The Somers Team at KW Philadelphia - Philadelphia, PA

Delivering Real Estate Happiness

Sally - You got that right. Everywhere and every deal is different. We learn something from every deal that we do, especially with short sales ! Blog on indeed !

Aug 23, 2009 12:26 AM

John Slocum

Premiere Property Group, LLC - Vancouver Washington - Vancouver, WA

Broker, SFR - Vancouver WA Real Estate

Great Job you guys! It is essential to have one or several go-to lenders that you know can close loans pdq without killing deals. Keep up the great work! John

Aug 23, 2009 11:12 AM

Richard Stabile

Re/Max Real Estate Limited - Oradell, NJ

Bergen County New Homes Builder Realtor

Christopher and Stephanie:

Great job! Short are unpredictable. However once you establish the price the bank will take it can fall into place reasonably.

Richard

Aug 23, 2009 03:14 PM

Anna Stout

F.C.Tucker Co.-Carmel/Westfield IN Homes for Sale - Westfield, IN

How cool is that? WAY COOL!

Keep up the good work guys. I'm working on one now, involving a Chapter 13. My first step is getting the Abandonment and Relief of Stay from the court..then go from there. I'll let you know how it works out. It's always good to read your posts.

Aug 24, 2009 06:06 AM

The Somers Team

The Somers Team at KW Philadelphia - Philadelphia, PA

Delivering Real Estate Happiness

John - Having those "go-to" folks in crucial in our industry for sure, especially lenders and mortgage pros.

Richard - Great to see you on here ! You are correct - sometimes a deal does establish the price and makes the next deal that much more easier in terms of knowing what you need to do.

Anna - Good luck in your deal ! They are a challenge, but worth it !

Aug 24, 2009 10:09 PM

Anonymous

alex

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(live-PR.com) - What is a loan modification and how can it help me?

A loan modification is when a lender or loan servicer modifies the terms of a loan which they currently collect payments on. The purpose of a modification is to create a payment that the homeowner can afford based on their current financial situation, and to re-establish a loan which

will perform and give the holding lender an efficient return on their investment. Loan modifications are granted on an individual basis, targeting homeowners who for whatever reason are having problems making their current payments, and do not have an option to refinance their mortgage, sell the property, or improve their financial situation. Loan modifications stand apart from refinances with no transfer of property between lenders, no new liens recorded in public records, and no new accounts on credit.
Loan modifications are accomplished through a detailed negotiation process between the servicing lender and the requesting party. A successful modification will drastically reduce the homeowner's monthly mortgage payment(s) to a level which they can realistically handle, which means final results are determined by their true expenses and affordability. The method of obtaining the needed mortgage payment can be accomplished by one, or a combination, of the following; interest rate reduction, term extension, principal balance reduction, and/or converting payments from principal and interest to interest only. This renegotiation not only helps homeowners avoid future turmoil, it also helps save those who are currently delinquent, and in jeopardy of losing their home.

Whether you are currently making your payments on time but foresee yourself falling behind in a matter of months, or are already several months behind and weeks away from foreclosure, modifications can help you! In the currently volatile economy, many home values have depreciated and income levels have dropped. Because of this, getting out of what could be a painful mortgage is not possible, leaving many with the only option of foreclosing.

A modification will allow you to get your goals accomplished and avoid future foreclosure, leaving you with a payment that you know you can make. Not only does this negotiation prevent future hardship, it can also help you get caught up if you are behind. Once you fall several months behind, a large lump sum is required to be paid to come current. Loan modifications while focusing on future payments will also help alleviate delinquent payments. Negotiations should address the delinquency and any other problems, so you have all of your hardship wiped away at the same time. Mortgage modifications for many equate to a home saving necessity, and a fresh start with true relief from their unavoidable hardship.

How do I qualify for my loan to be modified?

Various circumstances and situations will qualify one for a loan modification. An easy way to know you may be a candidate is you are financially "hurting" when it comes to meeting your monthly obligations. Living paycheck to paycheck, paying bills with credit cards, and depleting your savings are all vital signs that you may need a loan modification. Most people at that point approach a refinance, which is where many are finding they run into a wall. The most common reason for not qualifying for a refinance is the home's value coming in less than what is owed on the home, otherwise known as being "upside down". The second factor that will hinder one obtaining a new loan will be overall credit ratings. With a tightening finance market, top tier credit is generally needed to obtain a competitive loan with an affordable rate. Many are finding that without high credit scores, they do not have sufficient credit to get a beneficial loan. Lastly, due to many wage and hour cuts across the board, many homeowners no longer meet the debt to income ratio requirements for extended financing. The reduced income works against increased bills and generates monthly debt levels that are too high. All of the examples given are prominent suggestions of one who needs assistance through a loan modification.

What type of person can do a loan modification and where should I look?

Anyone can attempt to negotiate a modification, however not many have the needed time or ability to do what is needed on their own. When negotiating a modification, lots of time is spent on the phone and at the fax machine. You need to be very patient and willing to take a little bit of "heat" from the lender representatives. Typically, the best modifications are performed by Attorney backed firms who specialize in modifications. Many companies offer assistance with loan modifications but do not have the experience or knowledge to negotiate with these powerful lenders, nor do they have an Attorney to back their services. When looking for a modification company, make sure you confirm whether or not they are an Attorney backed firm. We can help you get in contact with the right person by simply filling out our 30 second form.

Loan Modification Now!

Lenders, particularly now, are open to a number of alternatives to avoiding foreclosure. Among the options include; temporarily or permanently reducing your interest rate, reducing your principal balance, extending your repayment term or restacking delinquency to your principle. These options assist you in curing any delinquency and ultimately will help you to restore credit status and most importantly keeping you in your home.

Forebearance / Repayment Plan

A full modification may not be necessary in your situation. If you are just a few months behind to the bank due to an unforeseen hardship or expense, New Leaf can structure a payment plan that brings you up-to-date with payments while allowing you to keep up with the standard payment cycle. This option is ideal for clients who can show a temporary financial hardship, but have a steady income.

We will review documentation supporting your monthly income and expenses and present a compelling plan to the bank. Clients may have to pay a Good Faith deposit towards the delinquent debt to the bank in order to ratify the new plan.

For an expert solution to your mortgage problems and options, please call us without delay
ask for Mr. Baker ( Mortgage Modification Consultants)

Mr. Antonne Baker
2729 W lehigh Avenue
Philadelphia Pa 19132
Phone 267 804-8613
Toll free 1 877 214-7677

Author:
alex arrington
e-mail
Web: http://professionalmortgageconsulting.blogspot.com/
Phone: 267 804 8613

Sep 09, 2009 03:14 PM

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