Should You Make Payments During Short Sale?

Should You Make Payments During Short sale ?

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

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: Fully executed Articles of Incorporation / Organization andOperation Agreement (contains Members Agreement which lists Officers and their ownership interest in the company) Proof of funds in the LLC's name 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: Copy of Articles of Incorporation List of Shareholders and Officers Proof of funds in the Corporation's name 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.

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

202-752-5168

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


Source:http://www.keepyourhomecalifornia.org/prp.htm

House Passes Senate ‘Cliff’ Bill and how it affects homeowners

Here is the National Association of REALTORS® update on the impact the new tax bill will have on real estate.

House Passes Senate ‘Cliff’ Bill

Banco de America Asistencia Financiera de hasta $ 30,000

Bank of América anunció hoy que está ampliando el programa piloto de venta corta cooperativa (cooperative short sale) programa que ha tenido gran éxito en la Florida. Aquí está el anuncio del lanzamiento de noticias del l banco.



Calabasas, California - Sumándose a las iniciativas de prevención de ejecución hipotecaria, Bank of América ha puesto en marcha un programa nacional que ofrece a los clientes morosos hipotecarios aumento de la asistencia con los gastos de reubicación - que van desde $ 2.500 hasta $ 30.000 – por completar y cooperar en una venta corta.

"Bank of América se compromete a proporcionar alternativas a la ejecución de una hipoteca siempre que sea posible". "Este programa puede ayudar a los clientes hacer una transición planificada de la propiedad cuando las opciones de retención se han agotado o han tomado la decisión de vender la casa."

El programa de asistencia de venta corta se basa en iniciativas, que llevó a 200.000 ventas cortas (short sales) terminadas en los últimos dos años y a otras 30.000 en el primer trimestre de 2012. Este programa se basa en una oferta de incentivos similar que Bank of América puso a prueba en Florida el año pasado.

Para calificar para el pago de asistencia de reubicación en el marco del nuevo programa, el dueño de casa debe trabajar de manera proactiva con el banco para obtener la aprobación previa de un precio de venta antes de presentar una oferta de compra al banco. Una venta corta (short sale) debe ser iniciada a finales de este año y cerrar el 26 de septiembre de 2013, para ser elegible para el pago. Los dueños de casa que califican para este programa y que ya iniciaron la venta corta, pero no han cerrado pueden ser elegibles para la asistencia de reubicación.

El monto de la asistencia en el marco del nuevo programa será determinado sobre una base de caso por caso mediante un cálculo que incluye el valor de la vivienda, la cantidad adeudada y otras consideraciones.

Inicialmente, el programa será ofrecido en las hipotecas que son de propiedad y administrados por el Banco de América.
El programa esta disponible a nivel nacional, Bank of América anticipa una mayor respuesta al programa de los dueños de casa en California, Nevada, Arizona, Florida y otros estados más afectados por la crisis económica y la caída de valor de la propiedad.

Los clientes que crean que pueden ser elegibles para este programa de asistencia de venta corta y de asistencia de reubicación pueden ponerse en contacto con especialistas del programa en el 877.459.2852.
Para ayudar a los propietarios a comprender el proceso de venta corta y otros programas que eviten la ejecución hipotecaria, Bank of América les invita a visitar el sitio web de Servicios de Transición en www.bankofamerica.com/hometransition.

Un feliz cliente mio acaba de recibir $ 17,500 como parte de este programa diseñado para asistir financialmente a los dueños.