miércoles, 27 de febrero de 2013

Short Sale FRaud: Short sale Negotiators

As an active short sale real estate agent with several certifications under my belt, you would think that I am know-all. That is farther from the truth as the short sale and foreclosure landscape change continually with new legislations from Freddie, Fannie, and each respective lenders and investors which give you a feeling of chaos.

Here is an informative article from a site that I regularly visit for updates and deals with short sale frauds related to shor sale negotiators.  In this field, many claim to be experts but unless you have first hand experience it is difficult to tell as many agents resort to the use of short sale negotiators who themselves have not been tested.

Short sale Tips. What is Short Sale Fraud

miércoles, 30 de enero de 2013

Short sale Update for Limited Liability Companies (LLC)

Dear Homeowners and agents:
Did you know that if the buyer of a short sale is a Limited Liability Company (LLC) or Corporation, there are specific documents that must be completed? If required documents are not provided, the short sale process can experience significant processing delays.

LLC required documents:
If the buyer is an LLC, the following documentation must be provided to the Short Sale Specialist:
  1. Fully executed Articles of Incorporation / Organization andOperation Agreement (contains Members Agreement which lists Officers and their ownership interest in the company)
  2. Proof of funds in the LLC's name
  3. Proof of the buyer's connection to the LLC
Corporation required documents: if the buyer is a Corporation, the following documentation must be provided to the Short Sale Specialist:
  1. Copy of Articles of Incorporation
  2. List of Shareholders and Officers
  3. Proof of funds in the Corporation's name
  4. Proof of buyer's connection to the Corporation
When providing the required documents specified above, please ensure they are legible and all pages of all documents are included. In addition, name each document with its own specific title (e.g., Articles of Organization). Failure to provide the Short Sale Specialist with fully executed and legible required documents may cause delays in processing the short sale file, and / or may result in the file being declined.
Per investor guidelines, additional documents may be required and will be communicated, as applicable, by the Short Sale Specialist.

viernes, 18 de enero de 2013

New Guidelines for Fannie Mae Short Sale

August 21, 2012
Fannie Mae Announces New Short Sale Guidelines

New Guidelines Streamline Short Sale Processes to Prevent Foreclosures and Help Communities Stabilize

Andrew Wilson


WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced that it will implement new short sale guidelines for servicers to follow as part of the Federal Housing Finance Agency’s Servicing Alignment Initiative. The new guidelines streamline documentation requirements, waive deficiencies for borrowers that successfully complete a short sale and set standard payments for subordinate lien holders. In addition, all servicers will have the authority to approve and complete short sales that conform to the requirements without receiving individual approval from Fannie Mae.

“Short sales have become an increasingly important tool in preventing foreclosures and stabilizing communities,” said Leslie Peeler, senior vice president, National Servicing Organization, Fannie Mae. “We want to help as many homeowners avoid foreclosure as possible. It is vital that servicers, junior lien holders and mortgage insurers step up to the plate with us. These new guidelines will open doors to help more homeowners qualify for short sales, remove barriers to completing short sales, and make the process more efficient for homeowners and servicers.”

Under the new guidelines, servicers will be permitted to approve a short sale for borrowers who have certain hardships but have not yet gone into default. Those hardships include the death of a borrower or co-borrower, divorce or legal separation, illness or disability or a distant employment transfer. In addition, Fannie Mae is significantly reducing the documentation required to complete a short sale, including requiring no documentation of a borrower’s hardship 90 days or more delinquent and have a credit score lower than 620. This will remove barriers for those homeowners who are most in danger of foreclosure and increase servicer efficiency in completing a short sale.

Fannie Mae will also limit subordinate-lien payments to $6,000. Previously, subordinate lien holders often attempted to negotiate higher payments. The servicer will be able to offer the maximum payment of $6,000 in order to facilitate the transaction. By setting a standard payout amount and a limit for every transaction, Fannie Mae is removing the guess work and standardizing the transaction to help accelerate the short sale process.

Fannie Mae has taken a number of steps to make the short sale process more efficient, including implementing a Short Sale Assistance Desk to help real estate professionals in targeted markets work out challenges in individual short sales, requiring servicers to complete short sale evaluations within 60 days and making military families who receive Permanent Change of Station orders eligible for a short sale. Fannie Mae completed 38,717 short sales through the first six months of 2012 and 70,025 in full year 2011.

The Servicing Guide Announcement implementing the changes to Fannie Mae’s short sale guidelines will be distributed to servicers and posted to www.efanniemae.com on Wednesday, August 22. Homeowners can learn more about short sales, modifications and other foreclosure alternatives at www.knowyouroptions.com.
Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.
Follow us on Twitter: http://twitter.com/FannieMae

Principal Reduction: List of Servicing companies

El Programa de Reducción del Saldo Principal* (Principal Reduction Program - PRP) ofrece ayuda a propietarios de casa elegibles que han experimentado una dificultad económica grave junto con una reducción severa en el valor de su propiedad.
Los propietarios de casa que califican para participar en el programa PRP podrían ser elegibles para recibir una ayuda de hasta $100,000 a través de Conserva Tu Casa California.

The Principal Reduction Program* provides assistance to eligible homeowners who have experienced an economic hardship coupled with a severe decline in the home's value.
Homeowners who qualify for the PRP could be eligible for up to $100,000 in assistance from Keep Your Home California.

Here are the 50 servicers participating in the Principal Reduction Program. The latest to join are UMe Federal Credit Union,Bourns Employee Credit Union, Fay Financial, Seterus and Lender Live Network. Click below for a complete list.

List of Participating Agencies for Principal Reduction