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Gainesville Short Sale Cost

Gainesville Short Sale Cost

Gainesville FL- If you think your life would be most livable without worrying for mortgage dues per month, then a short sale might just be the kind of rescue you needed to get rid of a home you can no longer afford.

You might have been considering short sale for a long time but is not sure how to get started– how the process works, the legal requirements needed, and most of all, how much it will cost you to short sell.

The answer is plain and simple– short sale will not cost you anything. If it does, then only to a minimal amount. Nevertheless, there are no costs or fees required for a short sale in majority of cases.

Please be informed however, that short sale does not come without some sort of cash involvement. Most of the money associated with short sale includes the realtors, title costs, transfer taxes, and attorney fees. Your lender should understand one common sense: if you were not able to afford your mortgage, then you will also not be able to pay for all these costs.

As short sale became a more common alternative to foreclosure, lenders today are more willing to pay on your behalf any costs involved in the short sale process. If this phenomenon baffles you, here’s what you need to know.

If financial hardships have hit you, and you have long been delinquent or you can no longer keep up with your mortgage payments, then your lender can now proceed with their legal action­­­—foreclosure.

But, lenders have already learned their lessons. They learned that foreclosure is very expensive along with its legal fees, taxes, insurance payments, and court costs. In addition to that, they will have to maintain a vacant foreclosed home, pay a realtor for resale, and sell it for below market value.

Their judgment points to short sale as a cheaper and better alternative. Thus, they are willing to pay all costs needed to short sale.

Other Articles to Read:

Gainesville Homeowners – Have an FHA Loan – Help on the Way

Gainesville Residents are Not Scared by the Housing Crisis

Gainesville Short Sale Agents Rent To Buy Scheme

When Can you Own a Home Again After Foreclosure?

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.


Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals. Gainesville Short Sale Agents

  

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Why it is Important to Understand the Short Sale Process

Why it is Important to Understand the Short Sale Process

It is of much importance to have a comprehensive understanding on the short sale process. So if you are an investor, listing agent, homeowner, or the buyer’s agent, make sure you are knowledgeable in every detail of the process, this ensures the transaction is well facilitated. Always make it a point that you are able to explain the process precisely to the homeowner and buyer. It is one of your duties to keep them updated regularly.

If you are a listing agent, you are definitely working in the best interest of your client—the seller. At some point, you may have to do some training, coaching, and negotiating with the buyer and the buyer’s agents.

Although as a Gainesville Short Sale Agent it is not my responsibility to coach and train the buyer’s agents and their buyers about the short sale process, however I do it to keep the buyer’s agent and buyer engaged. I am working for my client’s best interest since their ultimate goal is to get their home sold as a successful short sale and keep the buyer in the deal. Most of the buyer’s agents I speak with are ill informed of how the short sale process truly works. Many of them believe the short sale can be processed in 30 days. Are you kidding? Most short sale banks are not set up to process short sales in 30 days. Bank of America touts they have the ability to do so, however, they do not have it down yet. A realistic time frame is 90 to 120 days from the date of offer to short sale approval.

It is even more important that as a short sale agent you are not handling all files completely on your own. You will not stay in business. You should have a team of professionals to assist the sellers and buyers through the process. This includes trusted, reliable and experienced Real Estate and Tax Attorneys, CPAs and Title Companies.

Laws, rules, regulations and processes are constantly changing as well as the available homeowner assistance programs.

An essential part of a partnered company is its integrity. It is important that you consult a company that has established its reputation on closing short sales and have a proven record of success. When you do business with such company you will be at ease that the documents are completed correctly and submitted timely otherwise your short sale will not close.

If you live in a state where attorneys do all of the closings, then make sure you are working with an attorney that is an expert in handling short sales, do not take chances. If you happen to know an attorney who is competent in foreclosure defense, he would be great to work with. Another attorney you may need as a part of your professional team is a bankruptcy attorney.

Bringing together a team of professionals signifies you only want to work with the best to provide an outstanding service to help you as a homeowner.

The following steps in the short sale process will be further elaborated:

– Vetting the homeowners for the short sale
– Gathering the documents from the homeowner for the short sale package
– Putting the short sale package together
– Pricing the property correctly
– Listing the property, strategy for success
– Accepting offers on the property
– Sending the authorization letter
– Sending the package to the lender
– Receipt of package by the lender
– An authorization letter from the homeowners to give you permission to go around the servicer and go to their note owner
– Lender orders the BPO and/or an appraisal
– If offers are in line with ratios on BPO or appraisal, lender sends package to note holder/ investor
– Note holder approves package with conditions
– Lender sends package to MI or PMI for approval if applicable
– Short sale lender sends acceptance letter to listing office or title company
– Title company gets ready for closing

Below is a testimonial from one of my happy and satisfied clients.

It has been an absolute honor working with Stephanie Anson.
Stephanie is professional, prompt, and truly has the heart of a teacher. We knew nothing about the short sale process. In fact, because of our previous home buying experience, we were pretty skeptical we would meet a realtor we could rely on and trust.
From the first time she came to our home, Stephanie was able to put us at ease. Before we agreed to work with her, Stephanie offered to hold a free workshop simply to explain the short sale process. She was incredibly patient and answered all of our questions (over and over again). She was able to connect her knowledge of the industry with her own personal experience and the experiences of past clients.
She gave us incredible counsel when it came to showing our home. When we saw the listing live on the Internet we were amazed at how gorgeous it looked. Several potential buyers thought it was awesome too because we got an offer less than five days after viewing. Throughout the process we were kept in the loop and always knew the best case and worse case scenarios. We were prepared for anything.
There was no doubt that Stephanie always had our best interest in mind. We are so thankful to her because she has helped us get from under the burden of this upside down mortgage. The job she did for us literally changes our life for the better.

–Val and Paul Brown

Preparing for a Gainesville Short Sale

Most of the sellers I have had contact with are good people who fell upon hard times and many of them are embarrassed about the down spiral of their credit. It is unfortunate that many of them have to borrow money or exhaust their savings just to pay their mortgage dues, in hopes to postpone the inevitable and most undesirable circumstance. There are also people who couldn’t care more and just walks away. These are the people who will least likely be qualified for short sales. They just leave the keys and run after they have milked the system for all they can.

IMPORTANT TIP: Lenders cannot force homeowners to liquidate their 401Ks or certain retirement accounts but they can turn down a short sale should they see that the assets are too much in their retirement accounts. While the homeowner’s retirement savings might be safe, if their lender insist on having them pay a deficiency on the sale of their home through short sale, their lender has the legal right to pursue them.

Should you decide to proceed with the short sale, then have following questions ready for your Gainesville Short Sale Agent:
– How much have you paid for your house?
– Have you escrowed your taxes and insurance?
– Is this your primary residence?
– Have you lived in this house for at least two years out of five years?
– Have you ever been relocated for work?
– When was the last time you made payments for your mortgage?
– Are you current on your HOA?
– How many loans does this property have?
– Did you get the loans when you bought the house?
– Did you take out an 80/20 loan, 80/10/10 loan? (those are usually HELOCs on the 20/s and the 10/s)
– Have you refinanced the house since you bought it? When was that?
– Did you take out a home equity line of credit (HELOC) after you bought the house?
– What did you do with the loaned money from the equity line?
– What improvements have you made on the home?
– Have you taken before and after photos of repairs made from HELOC loan?
– What is the present condition of your house?
– Was your house tested for Chinese Dry Wall?
– Who do you pay to for each loan?
– Does your lender have mortgage insurance on the house?
– Have your lender sent any notices or letters?
– Have you ever been served with summons and complaints?
– Do you happen to know the owner of your note?
– How many of your family members live in the house?
– Are there grown children or unemployed relatives living in your household?
– Do you have a parents or grandparents living with you?
– How long have you been unemployed? (if unemployed)
– Do you have medical bills? How long have you been in the medical condition?
– What is the complete address of the house you need to short sale?
– Have you tried selling your house?
– If your house have been listed, how long was it listed and for how much?
– Do you have personal retirement accounts? If yes, How many?
– Do you still have any other money available anywhere?
– Do you have any other properties?
– If this is not your primary residence, is this rented out?
– Do you have a statement of profit and loss for this rental?
– Were you able to file last year’s tax return?

Other Articles to Read:

More homeless? Where will the mortgage settlement fund go?

My Gainesville Short Sale Appraisal Came in Low, Now What?

Gainesville Short Sale Qualification Process

When Can you Own a Home Again After Foreclosure?

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.


Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals. Gainesville Short Sale Agents

  

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Gainesville Short Sales Agents Refinancing Bankruptcy Trick

Gainesville Short Sales Agents Refinancing Bankruptcy Trick
The scammer assures you that they can negotiate with your lender to help you refinance your home. The scammer then asks for an upfront fee and disappears with the your money and files a bankruptcy in your behalf without your knowledge.

Yes, filing bankruptcy will temporarily stop the foreclosure, but this is just the beginning of a nightmare. Since you are not aware of it, you are also not aware of ongoing court hearings, and your absence on these hearings will compel the judge to start the foreclosure proceedings. This scenario further creates many other unfavorable circumstances.

Scam Alert: Do not entertain companies or individuals who:

1. Guarantee to save your home from foreclosure even under any circumstance. There is no such powerful company/ individual that can make such wonders.

2. Makes you pay your mortgage dues directly to them and not on your lender. This is ridiculous, you must be able to detect it’s a scam at the moment this is brought up.

3. Shows intent to buy your home for a fixed price that is not in accordance with the present housing market. These kinds of negotiations always have a malicious plan behind. To think, who would buy a property that cost more than the present market value? And are you willing to sell your house for less than its worth?

4. Makes you urgently sign documents that you do not understand. This is one of their tactics so you wouldn’t have to review the pages. Under no circumstance should you affix your signature on any document that you have not examined. And much more if you have to sign via coercion.

5. Advises you to stop contacting your short sale lender and short sale attorney.
At some point during the deal, you may be misled by this proposition. If the settlement offered is legal, then there is no reason you should stop communicating with your lender and attorney. And remember, there is no such means of saving your home through illegal means or under the table agreements.

6. Collects an upfront fee (except attorneys). Charging upfront fees is against the state law of Florida. All fees must only be paid and accepted upon work completion. Common sense will tell you that you have no assurance the work would be done when you pay upfront fees.

7. Requires you to transfer your title to them. Please refer to the Rent to Buy Scheme.

8. Proposes to rent your home from them and then buy it back later. Discussed in Rent to Buy Scheme.

9. Accepts only cash or cashier’s checks for payments. Scammers designed it this way since it is difficult to track down transactions made through cash or cashier’s check since there are no appropriate money transmittal records.

There are strict guidelines regulating the purchase of scammed houses during the short sale process. A penalty of $15,000 is imposed to every infarction. This law refers to the foreclosure fraud CS/HB 643.

Please refer to your state’s law on this issue as laws vary from state to state.

Gainesville Real Estate Agents need to be very careful before they do business with any short sale mitigation company. It would be safe to verify their background and references and check their closing ratios. There are actually no licensing requirements for a short sale negotiator in most states. It would serve you best if you transact with a Gainesville short sale specialist who have assistants that help you do the paperwork and allows you to step into the negotiation process so that everything is transparent.

Other Articles to Read:

Banks Are Calling Homeowners To Solicit Short Sales

Options To Prevent Gainesville Foreclosure when Unemployed

Do I Have to Pay for the Real Estate Agents Commission?

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.

Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals. Gainesville Short Sale Agents

  

Gainesville Short Sale Buyer Advantages

Gainesville Short Sale Buyer Advantages Some Gainesville Realtors® may even advise prospective Gainesville home buyers to stay away from short sale listings. It is the agent’s option to understand and work with short sales. But if the buyer is interested, the agent could refer the buyer to an experienced Gainesville short sale agent. If you are an agent not offering a short sale, then tell the buyer outright that you are not going to show them any short sale listings.

As a buyer, here are the benefits of buying a Gainesville short sale

Buying a short sale means getting a good deal on a home that is not a foreclosure. Since you are allowed to inspect the home’s condition, you are most likely getting a home that is in better shape than a bank owned. As with a foreclosed home, banks do not disclose the history and condition of the property.

If you have ever wondered how much you have “saved” from buying a Gainesville short sale, well it’s usually 10% to 20% less of the normal market value of the neighborhood. You may not have made a “steal of a deal” as with a foreclosed property but you will get great value for your money in the long run.

This kind of a deal is a great buffer in case your local real estate market spirals down.
Buying a short sale requires a lot of patience for the buyer and agents. It is highly advisable that you refer to an experienced Gainesville short sale agent since they have a proven experience in handling short sales.

A Hint to buyers: Before making an offer on a short sale listing, take notice of the following considerations about the listing agent:

  • Will they be involved with the short sale process?
  • How many short sales have they closed?
  • Are they helpful and cooperative on first contact?

If you are the buyer’s agent, you have to make it a point that your buyer understands the short sale process. Your buyer has to patient during the complex and quite lengthy process of acquiring a short sale property, make sure you have their commitment to cooperate until closing.

Take note that the buyer must also be able to close immediately once the seller’s lender approves the short sale since most of the short sale acceptance letters requires a 30-day closing. Remind the buyer to secure their funds first hand.
Gainesville Short Sale Buyer Advantages

Other Articles to Read:

More homeless? Where will the mortgage settlement fund go?

My Gainesville Short Sale Appraisal Came in Low, Now What?

Where will the mortgage settlement fund go?

When Can you Own a Home Again After Foreclosure?

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.


Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals. Gainesville Short Sale Agents

  

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Get a mortgage after Short Sale | Foreclosure

Get a mortgage after Short Sale | Foreclosure

I had a Bankruptcy on my FHA loan, when can I loan again?
3 years from the discharge date.

I had a Bankruptcy on my Conventional loan, when can I loan again?
4 years from discharge date.

I had a Bankruptcy on my USDA loan, when can I loan again?
3 years from discharge date.

I had a Foreclosure on my FHA loan, when can I loan again?
For most, 3 years from the date on Certificate of Title. If it is more than 3 years but less than 7 years, LTV could be limited to 90%.

I had a Foreclosure on my Conventional loan, when can I loan again?
7 years from the date on Certificate of Title.

I had a Foreclosure on my USDA loan, when can I loan again?
3 years from the date on Certificate of Title.

I had a Short Sale on my FHA loan, when can I loan again?
3 years from the date on the Short Sale HUD1. But there is an exception if there were no late mortgage or installment debt payments.

I had a Short Sale on my Conventional loan, when can I loan again?
4 years from the date of the short sale HUD1.

I had a Short Sale on my USDA loan, when can I loan again?
There is no seasoning requirement with GUS “accept/ eligible” findings. For manually underwritten loan, the risk level will be evaluated depending on case-to-case basis.

I have requested for a Mortgage Modification on my Conventional and FHA loan, how long do I have to wait?

Other Articles to Read:

Gainesville Florida Renter Rights During Foreclosure

Choosing the Best Offer for Gainesville Short Sales

Do I Have to Pay for the Real Estate Agents Commission?

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.

Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals. Gainesville Short Sale Agents

  

3

Short Selling and Renting from the New Owner – Gainesville Short Sales

Short Selling and Renting from the New Owner – Gainesville Short Sales

Gainesville Short Sales Question: Can a homeowner short sell his home and rent from the new owner with the possibility of buying it back after his credit is paid?

This may be a good idea but too risky to try. It’s not wise to enter into something that is uncertain especially when it has legal aspects to it.

The banks have varying standards and regulations when it comes to short sales. Short sale approval letters vary from bank to bank. But normally, banks set a condition that the occupant/seller cannot continue living in the home once the sale has closed. This could be considered a mortgage fraud and you might get into trouble. To be sure, it’s best to seek legal advice from your Gainesville short sale attorneys.

Criminal charges may be filed against you if the bank found out that you violated the parameters provided in the short sale approval. If you are an underwater homeowner and could no longer sustain your mortgage payments, it’s best to simple do a short sale.

Other Articles to Read:

Gainesville Homes Short Sale Update | Freddie Mac LP Relief Program Can Save Your Home

Gainesville Short Sale Update | Banks Are Calling Homeowners To Solicit Short Sales

3 Questions to Ask Before Hiring Gainesville Short Sale Agent

Short Sale Agents in Gainesville | What Gainesville Underwater Homeowners Say

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.


Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals. Gainesville Short Sale Agents

  

Gainesville Short Sales Update: If You Have A Short Sale Or Foreclosure, You May Owe Federal Income Taxes In 2013

Short Sale Agents in Gainesville Florida Update – Please let your clients know that if you have a short sale/foreclosure succeeding this year, you may owe income taxes in 2013.

Homeowners have until Dec. 31, 2012 to undergo a short sale or foreclosure without suffering tax consequences – only when the debt has been released by the lender. The rules will change on January 1, 2011. Federal income taxes will be imposed on the amount that the lender forgives in a foreclosure or short sale. Example, if a home has been sold at an amount which is short of the amount owed on the mortgage by $50,000; the homeowners will be charged federal income taxes on the $50,000. The homeowners under the 25 percent bracket would owe $12,500 and those under 15 percent tax section would owe $7,500.

It is necessary for the bank to officially sign off the loan in writing before Dec 31 or else, homeowners would be on the curve even when the home is sold. This law took effect five years ago when the housing market nationwide crashed.

According to the Internal Revenue Service, one of the provisions of Mortgage Debt Relief Act of 2007 is to allow taxpayers to exclude income from the discharge of debt on their principal residence. Qualifying for the relief are debts reduced through mortgage restructuring and mortgage debt forgiven in connection with a foreclosure. According also to IRS, debt that will be forgiven this year would reach up to $2 million – $1 million if married and filing separately.

Short Sale Agents in Gainesville Florida consider it a relief that homeowners declaring bankruptcy could be exempted from paying income taxes on any cancellation of debt income if the debt is forgiven in the bankruptcy even if the debtor is solvent. Homeowners may not be required to pay income taxes on any debt income cancellation if their debts go beyond the value of their properties.

Lenders have been exerting efforts to speed up the short sale process. But there are instances that short sales are disrupted. An instance would be when there is a disagreement with the terms and another is when the would-be buyer chicken out off the deal.

I am not an attorney and the statements above are not legal counsel.  Please seek advice from your Attorney or CPA regarding taxes and the implications of your short sale.

Other Articles to Read:

What is a Short Sale?

Short Sale Process – What to Expect

Short Sale Top 10 Questions

Do I Have to Pay for the Real Estate Agents Commission?

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.
Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals.

  

Short Sale Agents in Gainesville – What Gainesville Underwater Homeowners Say

Short Sale Agents in Gainesville: What Gainesville Underwater Homeowners Say – We often hear or read silly one-liners that seem to be not making sense at all. There a lot of this silly stuff circulating in the media too!  Just the other day I was listening to an expert on one News talk show and this so called expert had it all wrong on why homeowners Short Sale!  I was about to fall out of my chair!  How in the world do National news organizations vet their experts?  Originally, twitter embodied mostly comedy writers’ rapid-fire blurbs of silly things young women say. Later on, the spinoff web video series carried the amusement to up the groove.

But as Short Sale Agents in Gainesville perceive it, these videos are hilarious only for those who are connected to a large number of community members being jeered within. This may be attributed to their obsessions, fixations, loves, hates and even passive aggressions that connect the group.

Nothing is different in the real estate community. Let’s get to know some of the seemingly silly yet strikingly real stuff that underwater homeowners say:

1. “The banks inflated the prices.”
2. “Businesses strategically default all the time.”
3. Fill in the blank: “None of us would be in this mess if it wasn’t for _____ .
a.) appraisers
b.) the Fed
c.) McMansions
d.) the banks
e.) the “1 percent”
f.) President Obama
g.) former President Clinton
h.) former President Bush
i.) subprime loans
j.) Wall Street

4. “I applied for a loan modification and they told me the documents got lost.”
5. “The bank said they don’t give modifications to individuals who are current on their payments.”
6. “Can my sister just buy it from me in a short sale, then sell it back to me?”
7. “I’ll lock in my losses – I can’t do a short sale.”
8. “I’ve gotta cut my losses.”
9. “I’m so over it.”
10. “I can’t keep throwing good money after bad.”
11. “I have to do a short sale.”
12. “What do I need to know about doing a short sale?”
13. “I’m going to buy a car, cash in my equity line and then do a short sale.”
14. “If I could just get a principal reduction.”

Short Sale Agents in Gainesville point out that these sayings of homeowners have no relevance if not uniting. It only shows that no matter how you feel at any given point, there are others experiencing the same things and you are not alone in this world. These cliches coming out of underwater homeowners’ mouth may relate to I’ve heard, I’ve heard, I’ve heard! They may sound silly but logically, they give out a point.

Other Articles to Read:

Support Florida’s Super Exemption

Loan Modifications For Gainesville Short Sale

Banks Are Calling Homeowners To Solicit Short Sales

Options To Prevent Gainesville Foreclosure when Unemployed

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.
Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals.

  

Loan Modifications For Gainesville Short Sale

Loan Modifications For Gainesville Short Sale

Your Gainesville short sale has just been turned down and you are wondering why. Perhaps, you know the reason but it doesn’t seem to make sense.

As a Gainesville short sale agent, I have witnessed homeowners – who settle their trial payments on time – being subjected on trial modifications only to end up rejected.

Here are some scenarios that will point out reasons – perhaps, mere excuses by lenders – why a Gainesville short sale is rejected:

You make your mortgage payment to Bank of America. You apply for a loan modification with the Bank of America since you are behind on your payments and can no longer settle it. Though you are in a foreclosure, the judge has not released an order to auction your home yet and you are still living in your home. You are in total fear seeing your neighbors lose their homes. You start hoping upon learning on the news that the Federal Making Homes Affordable Program is able to aid homeowners keep their homes by getting a loan modification. You keep on hearing about loan programs that seemingly would help you keep your home but to your dismay, nothing would work. Your hope just turns into hopelessness.

Your adjustable rate application has been submitted and your mortgage payment is up from $1600 a month to $2300 per month; therefore, you are no longer able to make your payments.The reality is that you can’t afford these payments anymore. For nearly 2 years, you’ve been awaiting for the Bank of America’s approval on your loan modification and to be certain, you hired an attorney to aid in defense of foreclosure.

Suddenly, the Bank of America rejects your application on loan modification. You become totally confused about the situation and wonder why such thing happened. It seems unlikely since the Bank of America is one of the large lenders. It also participates in the government’s Federal Making Homes Affordable program, the HAFA program, and other programs by the government.

Later you learn from Bank of America that the investor had the final say in turning down your loan modification application. The biggest question is, “How come an investor is able to make such decision?” The reality is, the confusion is all around us. There are people in the real estate business who are not knowledgeable about the process and how it is being handled.

The Bank of America is the servicer and when you make your payments to them, it’s not indicative of their ownership on the note that you are paying on.

The vital thing to do firsthand is to find out who truly owns your note. Inquire from who make your mortgage payments.

The very first thing you need to do before you ask for a loan modification is to find out who actually owns your note. You can do this by calling who you make your mortgage payments to and asking them. It may be necessary for you to make a written request to be forwarded by certified US mail, since a lot of servicers don’t disclose such information.

Many of the servicers don’t want to give you that information so you may have to make this request in writing and send it by certified US mail. You have a bigger chance at getting an approval on your loan modification if you qualify and Freddie Mac or Fannie Mae own your note. Your chances blurs if your note goes to a private group of investors.

A ratio of one for every eight homeowners’ loans were sold to investors on Wall Street. A collection of loans are grouped together – called as mortgage-backed securities – , which are sold off to investors. It will be five times more likely for homeowners to be late on their house payments if they have mortgage-backed securitized loan. A lot of these borrowers were provided with loans that from the beginning, they were not qualified for. Most of these homeowners getting the loans were not able to read the fine print and were not able to assess how high their mortgage payments might go when they are adjusted.

The parameters in qualifying on short sales, modifications, and terms of foreclosures and deficiencies are inconclusive. Homeowners who are told no by the investor have little recourse.

The federal Making Homes Affordable program lenders participating in the program must alter all those homeowners that qualify. The exception is when the investor has a rule that they do not permit alterations. It has been reported to congress by the Federal Housing Finance Agency that such securitized mortgages are a barrier to the success of the Making Homes Affordable program. The reasons why the changes are rejected have not been revealed so there are little to no facts to proceed with.

Investors declining to the homeowner’s application on loan modification doesn’t seem to make any sense.
Bank of America’s defense is that the money is needed by investors also. For instance, there is a situation with Chase wherein the homeowners are applying for a loan modified but Goldman Sachs is the issuer and Deutsche Bank is the trustee. On few occasions during Gainesville short sale negotiations, the investor gives the ball back to the servicer arguing that the latter is responsible for the decision in approving a loan or not.

Investors somehow think that they are being treated as the scapegoats. There are easily blames for everything. It’s difficult to determine the truth because you rarely get a chance to talk to any representative at the investors’ group. Chase bank, for this particular situation, claims that the payment goes up on a loan modification because the investors do not cancel the past due debt. Chase then had to account the past due balance along with other fees and penalties into the loan modification. This will then lead the disqualification for the loam modification of the homeowner.

Servicers do have contracts and agreements that they sign together with investors. Such agreements have the rules for modifications. The agreements are called Pooling and Servicing Agreements, also known as PSA’s. PSA is oftenly what the servicer claims is the reason for them not being able to do the loan modification or release the deficiency on a Gainesville short sale.

When you inquire with other people in the management areas or with investors, they claim that there is nothing in the PSA’s that would hinder the servicer from accepting loan modifications, Gainesville short sales and releases. A new study is about to be released from a law school wherein they discover that only about 8% of these mortgage-backed securities agreements have any language that indicates the servicer is not qualified to do a loan modification for these notes. That indicates about 92% of all the NO’s could be YES’s in reality.

They are fearful about law suits! Chase Bank or Bank of America or any other servicer and Deutsche Bank- it says that SERVICER can “waive, modify or alter any term” given that the servicer gives a “reasonable determination” that the modification is in the investor’s best interest. The Attorneys studying these agreements say there is quite a bit of room for servicers to make these decisions. The language itself in the agreement is suffcient for the servicers legal counsel to be focused with the investor suing them for not acting in the best interest of the investor. They are not allowed to put the homeowner ahead of the investor. This is about business and if they want business from investors they have to make sure they are looking out for the investors’ interest.

The fear of law suits is the biggest deterrent to getting the servicers to approve loan modifications and Gainesville short sales, says the Treasury department. Simply turning down the loan modifications are the answer many servicers opt to choose. Nothing personal and this is not against the homeowner. The role of the servicers is to watch their own backs and to protect the assets to which they have been entrusted with – your mortgage-backed security. The Treasury Department says they can relieve some of the pressure of the fear of lawsuits by standardizing requirements for loan modifications and also laying out some type of calculation to determine if the investor will make more money by the loan modification or by the foreclosure.

Investors end up being normal people because most of these mortgage-backed securities were bought by pension funds and retirement plans of folks like your grandparents, your parents, your aunts and uncles or even yourselves. You may well be one of the shareholders of the very loan you can not pay.

Other Articles to Read:

Where will the mortgage settlement fund go?

More homeless? Where will the mortgage settlement fund go?

Choosing the Best Offer for Gainesville Short Sales

Why do Short Sales Not Close?

Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.

Please seek legal advice. This information is for informational purposes only.


Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals.