First time this home is on the market in the desirable Eagle Ridge area of Antioch!
Priced at $215,000 (2010-2011 County Tax Record Value), this home has 4 bedrooms, 2 baths and 2152 square feet. It has a newer AC/heater, water heater and stove, too. The back yard has room for your hammock to enjoy a relaxful afternoon. In addition is a covered patio and fruit trees. Here is a link to more photos and information!
For more information, please call me at 925-852-1659. This is a SHORT SALE with 2 lenders, and we’ve been working to obtain a HAFA Short Sale on this property.
According to my most recent CDPE conference call, mortgage delinquencies are still going UP! Nationwide 14% of mortgages are in some stage of foreclosure. Prime loans (the less-risky loan) has defaults going up to 10.3%, sub-prime loans up to 41.5%, and FHA/VA at 16% TOTAL. (FHA/VA numbers should be lower because very few FHA/VA loans being done during the subprime loan era.) Looking at this data, 1 out of 10 mortgage loans are NOT being paid.
If you cannot afford your home loan, YOU ARE NOT ALONE! Almost 7 million properties are not having their mortgage paid. If you need help, call me or a CDPE. Short Sales now represent 17.9% of transactions; they are a growing part of real estate sales.
The loan industry was never set-up for short sales, but they are now looking at their business and changing their focus towards short sales. BofA is the #1 short sale lender in the world (thanks to purchasing Countrywide); in the next 30-45 days, BofA will have a standard policy on their short sales! How exciting is that? WFB is in the process of creating a Realtor finder tool and they will look at CDPE’s as one of the rankings at the top of their referral list!
It was noted that mortgage partners/mortgage insurance still have a large say in a short sale, and if they say NO to a sale, it is a NO! Finally, the average home sale is $247,000, with short sales coming in at $215,000, distressed sales coming in at $161,600 and REO’s at $141,900. Clearly Short Sales help keep people in their homes and keep neighborhood property values up!
California Association of Realtors (CAR) sends out weekly newsletters to agents, and the most recent one mentioned that the typical US homeowner with a negative equity position will begin to build positive home equity by late 2015 or early 2016. Now doesn’t that make you want to make your payments for the next six years? (Can you see a “Daily Show” routine on that statistic?)
This data came from First American CoreLogic. (Click here for the complete article) In addition, homeowners in “depressed markets” may not experience positive equity until 2020! WOW! Another staggering statistic is that almost 25% of all residential properties with mortgages had negative equity at the end of the fourth quarter of 2009. That is one in four! I appreciate CAR giving us non-sugar-coated data, and it is nice to know that they are not one-sided in the housing market news.
Another NY Times article discusses how the market downturn has also greatly reduced a borrower’s equity in a re-finance situation. So, if a borrower has home equity below 20%, he or she must buy private mortgage insurance (PMI) for any refinance. So, depending on when a home was bought, refinancing may or may not be a viable option.
If you owe more on your home that what it is worth and don’t want to wait until 2016 to sell the property, call a realtor trained as a CDPE to assist you in a short sale or with your HAFA submittal. Isn’t it interesting how times have changed? Who would have thought that home values would stay stagnant for the next five years?
Now that HAFA will be helping distressed homeowner’s get out of troubled mortgages, these homeowners are now asking, “how will a SHORT SALE effect my ability to purchase another home?” The MBD Residential Lending Manual just released updated information regarding the effects of short sales and deeds in-lieu on re-purchasing a home, so here is the link to view the new guidelines that lenders have received from MBD. Conventional-Credit-Standards-for-Pre-Foreclosure-Events
1 in 7 homeowners are currently NOT making their mortgage payment. If that is you contact a CDPE for more information on how they can help.
What in the world is HAFA? The attached link will take you to CDPE’s new video explaining HAFA. It is simple and to the point. Lenders must comply with this new law and several lenders have stepped-up to the plate. Wells Fargo Bank just hired 10,000 people to hande their case load, Chase has a new website to help its clients, and BofA is using Equator to streamline processing and has added a website. Also, mortgage insurer (MGIC) has signed up for the program. HAFA will not replace the short sale, but should be a great step forward in helping owners stay in their home until they obtain financial help or a new owner.
CDPE also has a website to help, so click here. If you need more help, let me know. Take care!
HAFA (Home Affordable Mortgage Alternative) launched on 4-5-10, is part of the HAMP (Home Affordable Mortgage Program). HAFA is overseen by the US Treasury. It is a program to promote foreclosure alternatives, including a short sale. If a short sale is to take place, there are standards in place to simplify the process. The government’s definition of “standards” is timelines, minimum proceeds decided for the lenders and a standardized process using standardized documentation.
Borrowers must be evaluated for HAFA, have acquired the loan BEFORE 2009,have the home as their principle residence, and occupy the home. (Unless they moved for a job relocation.) Jumbo Loans and Fannie Mae/Freddie Mac loans are NOT eligible for HAFA. (Fannie & Freddie will have their own program later, but no timeline has been set.) Borrowers in bankruptcy or already in an executed short sale contract are also not eligible.
The borrower is eligible for HAFA if they do not qualify for HAMP, do not successfully complete a HAMP trial period, are delinquent on a HAMP loan modification, or the borrower just wants to go direct to a short sale with HAMP consideration. A huge benefit of this program is that the homeowner‘s debt is DISOLVED and they receive a $3000 financial incentive at close of escrow !
It has statistically shown that a home foreclosed upon can decrease the value of the home’s neighbors by 9%! This is why the government so wants this program to work, and not let the home go to foreclosure. This saves the lenders money! In addition, there are financial incentives for servicers and investors.
Finally, the HAFA Program is for borrowers in hardship and not for those seeking a strategic default! If you want more information on short sales, please call me at 925-852-1659. I have a Certified Distressed Property designation (CDPE), having completed extensive training to work with homeowners in distress, with a particular emphasis on short sales.
This is an update on my East Bay Short Sale #2. We just completed week 3 of the short sale process, and I have a new buyer that should stick. (Buyer #2 had put in OVER 40 offers on other East Bay properties and lost out; he is very anxious to close on my seller’s home.) Buyer #2’s purchase price is 6% less than original offer, but it meets list price and the BPO evaluation. YEAH!
Interestingly, the 2nd lender amount due has NOT changed from first offer. I had a conversation with my contact at the 2nd lender. She told me that investors are now requiring MORE of a percentage out of the offer price than previously required. The amount just went up this week, and thus no change in what the investor wanted. So, if you have a 2nd on a short sale, that investor will want more from the deal than they would have wanted in March.
I am a Certified Distressed Property Expert (CDPE) , having completed extensive training to work with homeowners in distress, with a particular emphasis on short sales. On this week’s CDPE conference call, it was mentioned that lenders now look more favorably on SHORT SALES than REO’s! Lenders feel they can get more money from a SHORT SALE that is occupied than an empty distressed home. Lenders do NOT want empty homes to become blight, because they draw down the value and also cost them more money in potential fines from not meeting county ordinances.
Week #4 will be 1st lender. Hopefully, they”ll agree to give the 2nd lender what they request and accept the balance that is left. Wish me luck, and I will keep you updated. If you want more information on short sales, please call me at 925-852-1659
I have been working with a lender to negotiate a short sale for my seller. This property has two (2) loans. In less than two weeks, because of my CDPE experience and complete short sale package, I had the 2nd lender complete a BPO and give me the amount that they need to do the short sale. I was quite happy with the progress and ready to submit paperwork and new HUD to the 1st lender, and the buyer walked. WHY? In two weeks, he lost patience with the process.
Here is what buyers can learn from this experience: 1) Short Sales take TIME, 2) Be Patient, and if you don’t have patience then don’t get involved with a short sale, 3) commit to yourself, your agent and the listing agent that you will give the process a minimum of eight weeks, 4) the process can move quick, slow down and move again, 5) be patient (did I say that before?) and 6) have your agent contact the seller’s agent on a weekly basis for a status update. (I gave the buyer’s agent weekly updates, and they still walked.)
Finally, each buyer of a short sale should have to write 50X on a sheet of paper, “there is no guarantee my offer will be excepted and it can take up to six months to hear a reply from the bank.” If each buyer did this, it would give the realtor a reference point for the buyer in waiting, and help the realtor when the buyer gets frustrated.
If you want more information on short sales, please call me. I have a Certified Distressed Property designation (CDPE), having completed extensive training to work with homeowners in distress, with a particular emphasis on short sales.
I have been working with an East Bay couple for some time. Through joint efforts, we defined the home, area and price that they wanted. When their “ideal” home came up, they were EXCITED. It was a short sale, and I told them that there was no guarantee that their offer would be accepted by the lender, but they were willing to try. My buyers wrote their offer for just UNDER .07% of asking price. (I gave them comps, but they set the purchase price.) The owner accepted and the seller’s agent started the short-sale process in motion with the lender.
After four months, my buyer was told yesterday (HAPPY EASTER!) that the lender wanted .015% MORE than asking price to accept the short sale. (The selling price was to equal BPO price.) My buyers did not accept and now feel they wasted four months of search time. I did not think the original price was that out-of-line, but my buyers wanted “a deal” and their offer was their loan approval limit.
Here is what buyers can learn from this experience: 1) Short Sales take TIME, 2) Be Patient, and if you don’t have patience then don’t get involved with a short sale, 3) just because it is a short-sale, does NOT mean that the lender is willing to give the home away, 4) lenders work in their own time and the process can move quick, slow down and move again, 5) be patient (did I say that before?) and 6) have your agent contact the seller’s agent on a weekly basis for a status update.
Finally, each buyer of a short sale should have to write 50X on a sheet of paper, “there is no guarantee my offer will be excepted and it can take up to six months to hear a reply from the bank.” If each buyer did this, it would give the buyer a reminder of what was initally said before going into the short sale, especially when the buyer gets frustrated.
If you want more information on short sales, please call me. I have a Certified Distressed Property designation (CDPE), having completed extensive training to work with homeowners in distress, with a particular emphasis on short sales.
First time this home is on the market in the desirable Eagle Ridge area of Antioch!
