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Beginning April 5, 2010 the lenders (who participate in Home Affordable Modification Program "HAMP") will have new guidance for conducting Short Sales and Deed-In-Lieu. The new guidance is part of the Home Affordable Foreclosure Alternatives Program (HAFA). Under this program the lenders:
1) Will not be able to require a cash contribution or promissory note from borrower;
2) Will no be able to pursue a deficiency judgment against the borrower;
3) Will use the borrower's financial and hardship information, collected in conjunction with HAMP program (the borrower will not have to resubmit these items);
4) Will send to the borrowers the pre-approval of short sale terms before the property is listed;
5) Will not be able to cut the REALTORS commission;
6) Will use standard processes, documents and timeframes;
7) Will provide financial incentives to borrowers, investors and services.
In order for the loan to qualify to the HAFA program, it needs to meet the following criteria:
- The property must be the borrower's principal residence;
- The loan must be the first lien mortgage, and must be originated on or before 01/01/2009;
- The current unpaid principle balance should be no more than $729,750;
- The total monthly mortgage payment should exceed 31% of the borrower's gross income;
- Mortgage is delinquent or it can be foreseeable.
As always, if you have any questions regarding this posting or other Short Sale/Real Estate topics, please feel free to call me or write me a quick e-mail.
Ihor Pochay
Realtor / Short Sale & REO Specialist
Tarbell, Realtors
Cell: (562) 334-7393
Off: (909) 364-9005 Ext. 471
Fax: (909) 364-9262
ihorpochay@tarbell.com
http://www.myrealtorihor.com/
www.shortsaleyourhome.blogspot.com/
Twitter: @ihorpochay
Showing posts with label sell home. Show all posts
Showing posts with label sell home. Show all posts
Monday, January 4, 2010
Thursday, September 10, 2009
Ten Reasons to Purchase a Short Sale Property
I’ve put together a list of 10 reasons why Buyers should consider purchasing a Short Sale home in today's market:
1). Great Value: Short Sale properties offer Buyers great prices. On average, these properties are 5%-15% below the market price!
2). Wider Selection: Most of the properties on the market today are Short Sales (65%-80%). In some areas, the percentage is even up to 90%. If Buyers consider Short Sale properties in the current market, they'll actually increase the chance to find the property that will match their needs.
3). Good Condition: The properties sold in Short Sale transactions will be in much better condition than the ones that are sold as REO (real estate sold by banks).
4). Credit of $8,000: If the Buyer purchase a Short Sale home before the end of November 2009, they will receive an $8,000 credit from the government!
5). Tax Relief: Buyers will also be able to deduct all interest, taxes and points from their taxes.
6). Pride of Home Ownership: No further explanation.
7). Reduce REO Inventory: Buyers purchasing Short Sale properties are in fact helping Sellers avoid foreclosure.
8). Negotiations: Buyers will have the ability to negotiate closing fees, home warranty fees and credits for repairs, etc.
9). Quicker Bank Approvals: The time to obtain Short Sale approval has been shortening. Some banks are able to approve Short Sale Approval Letters within 30 days.
10). Advantageous Edge: Banks are very motivated and willing to work with Buyers in order to avoid another foreclosure.
If you have any questions in regards to Short Sale transactions, I can be reached at (562)334-7393.
Ihor Pochay
Realtor / Short Sale Specialist
Tarbell, Realtors
Cell: (562)334-7393
Off: (909) 364-9005 Ext. 471
Fax: (909) 364-9262
ihorpochay@tarbell.com
http://www.myrealtorihor.com/
http://www.shortsaleyourhome.blogspot.com/
Twitter: @ihorpochay
1). Great Value: Short Sale properties offer Buyers great prices. On average, these properties are 5%-15% below the market price!
2). Wider Selection: Most of the properties on the market today are Short Sales (65%-80%). In some areas, the percentage is even up to 90%. If Buyers consider Short Sale properties in the current market, they'll actually increase the chance to find the property that will match their needs.
3). Good Condition: The properties sold in Short Sale transactions will be in much better condition than the ones that are sold as REO (real estate sold by banks).
4). Credit of $8,000: If the Buyer purchase a Short Sale home before the end of November 2009, they will receive an $8,000 credit from the government!
5). Tax Relief: Buyers will also be able to deduct all interest, taxes and points from their taxes.
6). Pride of Home Ownership: No further explanation.
7). Reduce REO Inventory: Buyers purchasing Short Sale properties are in fact helping Sellers avoid foreclosure.
8). Negotiations: Buyers will have the ability to negotiate closing fees, home warranty fees and credits for repairs, etc.
9). Quicker Bank Approvals: The time to obtain Short Sale approval has been shortening. Some banks are able to approve Short Sale Approval Letters within 30 days.
10). Advantageous Edge: Banks are very motivated and willing to work with Buyers in order to avoid another foreclosure.
If you have any questions in regards to Short Sale transactions, I can be reached at (562)334-7393.
Ihor Pochay
Realtor / Short Sale Specialist
Tarbell, Realtors
Cell: (562)334-7393
Off: (909) 364-9005 Ext. 471
Fax: (909) 364-9262
ihorpochay@tarbell.com
http://www.myrealtorihor.com/
http://www.shortsaleyourhome.blogspot.com/
Twitter: @ihorpochay
Thursday, June 25, 2009
SHORT SALE PROPERTIES ARE ON THE RISE
There are more and more Short Sale properties on the market these days. In my market area (Chino Hills, Chino, Phillips Ranch, Diamond Bar) it is about 50% of all the sales. The inventory of the listings is very short. The banks are not releasing the REO properties (shadow inventory), and the government's incentive of $8,000 tax credit for first time home buyers creates a huge demand for properties including short sales.
Recently, I've listed short sale properties on the market and within a few days attracted more than 20 offers from home buyers. The homeowners who listed their properties as short sales are now seeing an opportunity to sell their homes at the current market price, and in some cases even above the market price.
On the other side, the U.S. Department of Treasury will provide a $1,000 incentive to a loan servicing company for every successful Short Sale. It will also offer $1,500 to a borrower to assist with relocation expenses. Also, many REALTORS are encouraged to do Short Sales knowing that the commission will not be reduced if the investor is Fannie Mae. So many factors lead to the increase of the Short Sale transactions in 2009. That will help the Lenders minimize their loss and also will help the borrowers to move on with their lives without going into Foreclosure.
Ihor Pochay
REALTOR / SHORT SALE & REO SPECIALIST
Tarbell, Realtors
Cell: (562)334-7393
Off: (909)629-6186 Ext. 339
Fax: (909)629-6710
ihorpochay@tarbell.com
www.MyRealtorIhor.com
www.shortsaleyourhome.blogspot.com
Recently, I've listed short sale properties on the market and within a few days attracted more than 20 offers from home buyers. The homeowners who listed their properties as short sales are now seeing an opportunity to sell their homes at the current market price, and in some cases even above the market price.
On the other side, the U.S. Department of Treasury will provide a $1,000 incentive to a loan servicing company for every successful Short Sale. It will also offer $1,500 to a borrower to assist with relocation expenses. Also, many REALTORS are encouraged to do Short Sales knowing that the commission will not be reduced if the investor is Fannie Mae. So many factors lead to the increase of the Short Sale transactions in 2009. That will help the Lenders minimize their loss and also will help the borrowers to move on with their lives without going into Foreclosure.
Ihor Pochay
REALTOR / SHORT SALE & REO SPECIALIST
Tarbell, Realtors
Cell: (562)334-7393
Off: (909)629-6186 Ext. 339
Fax: (909)629-6710
ihorpochay@tarbell.com
www.MyRealtorIhor.com
www.shortsaleyourhome.blogspot.com
Monday, May 4, 2009
Who Pays The Commission In A Short Sale Transaction?
Many homeowners do not want to Short Sale their homes simply because they think that they will have to pay commission to REALTORS. That is not true. In all cases, when there is a Short Sale transaction, the Lien Holder (Bank) will pay all the commission and all the expenses (taxes, seller’s escrow fees, etc), so homeowners will not have to spend any additional money from their own pockets.
The banks are very particular in regards to how much they will pay to REALTORS for the complete Short Sale transaction. If the Buyers and Sellers are represented by two different REALTORS, the banks usually will pay 5% for them to split. If the Buyers and Seller are represented by one REALTOR – 4% commission is most likely to be approved by the Bank, as they are trying to cut the cost and get as much out of the transaction as possible, and in some cases it is a policy of the Bank.
However, if the investor of the loan is FNMA or Freddie Mac, the REALTORS will be able to receive commission up to 6%. Realtors should ask the sellers to contact their loan service company and find out who is the investor of the loan (most likely the loan will be sold on the Secondry Market to different investors). In many cases it will be FNMA or Freddie Mac as they are the investors for approaximately 60% of all the mortgages in US.
If you have any questions in regards to the Short Sales or need to conduct one, feel free to call me directly (562) 334-7393.
Ihor Pochay
REALTOR®/SHORT SALE SPECIALIST
Tarbell, Realtors
Cell: (562) 334-7393
Off: (909) 629-6186 Ext.339
Fax: (909) 629-6710
ihorpochay@tarbell.com
www.MyRealtorIhor.com
www.shortsaleyourhome.blogspot.com
The banks are very particular in regards to how much they will pay to REALTORS for the complete Short Sale transaction. If the Buyers and Sellers are represented by two different REALTORS, the banks usually will pay 5% for them to split. If the Buyers and Seller are represented by one REALTOR – 4% commission is most likely to be approved by the Bank, as they are trying to cut the cost and get as much out of the transaction as possible, and in some cases it is a policy of the Bank.
However, if the investor of the loan is FNMA or Freddie Mac, the REALTORS will be able to receive commission up to 6%. Realtors should ask the sellers to contact their loan service company and find out who is the investor of the loan (most likely the loan will be sold on the Secondry Market to different investors). In many cases it will be FNMA or Freddie Mac as they are the investors for approaximately 60% of all the mortgages in US.
If you have any questions in regards to the Short Sales or need to conduct one, feel free to call me directly (562) 334-7393.
Ihor Pochay
REALTOR®/SHORT SALE SPECIALIST
Tarbell, Realtors
Cell: (562) 334-7393
Off: (909) 629-6186 Ext.339
Fax: (909) 629-6710
ihorpochay@tarbell.com
www.MyRealtorIhor.com
www.shortsaleyourhome.blogspot.com
Tuesday, October 14, 2008
What is a Short Sale?
A Short Sale is when the Lender (bank) agrees to accept less of what is owned on the property. For example if you have a mortgage of $400,000 on your home and the current market price is only $300,000, the bank will end up with the loss of $100,000 if they approve the Short Sale.
Now why would the bank will do a Short Sale and lose money? The answer is simple. The banks are in the business of lending money and making interest on those loans, not in the business of owning houses. If the bank does not approve the short sale, they will have to foreclose the property and try to sell it as a Real Estate Owned by Bank, which will bring them a lot less money than they could receive from a Short Sale. That is why banks are very motivated to do a Short Sale instead.
Why would the seller want to do a Short Sale? The reasons simply are:
REALTOR / SHORT SALE SPECIALIST
Tarbell, Realtors
Off: (909) 629-6186 ext. 339
Fax: (909) 629-6710
ihorpochay@hotmail.com
http://www.myrealtorihor.com/
Now why would the bank will do a Short Sale and lose money? The answer is simple. The banks are in the business of lending money and making interest on those loans, not in the business of owning houses. If the bank does not approve the short sale, they will have to foreclose the property and try to sell it as a Real Estate Owned by Bank, which will bring them a lot less money than they could receive from a Short Sale. That is why banks are very motivated to do a Short Sale instead.
Why would the seller want to do a Short Sale? The reasons simply are:
- To be able to buy a new home as soon as 24 months from the close of a Short Sale (a Foreclosure will stay on the homeowner's record for 5-7 years);
- To be able to preserve the homeowner's credit score (a Short Sale has a lot less impact on the credit score than a Foreclosure);
- To avoid the Foreclosure;
- To have the opportunity to start all over again.
REALTOR / SHORT SALE SPECIALIST
Tarbell, Realtors
Off: (909) 629-6186 ext. 339
Fax: (909) 629-6710
ihorpochay@hotmail.com
http://www.myrealtorihor.com/
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