Curb Appeal Tips: How to Sell A Home Quick With Some Simple Curb Appeal Tips

Some times we come across properties that are in great condition,
and those are great, but more often in Real Estate you get properties
that in one way or another could use a little love…

Curb appeal is one of the most important factors in selling a home
fast. Buyers determine whether they like a house or not in the first
15 seconds.

And you know what they say… you never get a second chance
to make a first impression.

Many buyers are looking for flaws and if they see them  outside,
there is a good chance that the thought of what the  home looked
like is going to stick with them. Before they buy a home, the
buyers want to envision themselves living in the home.

Here are a few ideas that a home owner can use to make a huge
difference in selling the home but won’t break the budget.

 

• Swap out the old “Welcome” mat with a new one.

• Make sure that the doors are easy to open and they may want to paint them.

• Replace the porch lights and house numbers if they are broken or tarnished

• Add a nice bench or a couple of chairs on the porch, if you there is space available.

• Make sure the yard is manicured, weeds pulled and the shrubs are cut.

• Remove any cobwebs, dead plants, old mail etc

• Clean foggy and dirty windows

• Sweep the driveway and the entrance to the house.

Take a walk through the inside of the property and see what
the home needs. Some less expensive updates you can do to a
home is new lighting and replacing older mirrors in the
bath.

Make sure that the property smells clean and neutral. Get an
air-freshner and you could even wash or paint the interior walls
and ceilings. This will aid in keeping the home smelling fresh.

Cleaning the bathroom and kitchen counters will also assist
with making the home feel clean and smell fresh.

Take the time to do some of these quick cheap and easy
fixes that can help you sell a property quickly.

Contact me for any help with Real Estate.

Senate Bill 458 gives added protection to short-sale hopefuls

On Friday July 15th 2011, Gov. Jerry Brown signed Senate Bill 458 (Corbett) into law. The new law, which contained an urgency clause and became effective upon signing, protects homeowners pursuing short sales by barring first and secondary lien holders from going after sellers for money owed after the short sales close.

Making sense of the story

-- A short sale – a transaction in which the homeowner sells the property for less than is owed on the mortgage – must be approved by the lien holder or lien holders, if there is more than one.

-- Under previous law (SB 931 of 2010), a first mortgage holder could accept an agreed-upon short-sale payment as full payment for the outstanding balance of the loan, but the rule did not apply to junior lien holders. SB 458 extends the protections of SB 931 to junior liens.

-- The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) sponsored the bill and urged lawmakers to pass this much-needed legislation.

-- “The signing of this bill is a victory for California homeowners who have been forced to short sell their home, only to find that the lender will pursue them after the short sale closes and demand an additional payment to subsidize the difference,” said C.A.R. President Beth L. Peerce. “SB 458 brings closure and certainty to the short-sale process and ensures that once a lender has agreed to accept a short-sale payment on a property, all lienholders – those in first position and in junior positions – will consider the outstanding balance as paid in full, and the homeowner will not be held responsible for any additional payments on the property.”

From July 21, 2011. C.A.R's Market Matters
Reprinted with permission of the CALIFORNIA ASSOCIATION OF REALTORS®



Contact me if you have any questions or need any help,

Oliver Graf

Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360

Short Sale News for Homeowners: Treasury expands HAFA short sales program for vacant properties

The Treasury department recently announced several changes to the Home Affordable Foreclosure Alternatives (HAFA) program to make the program accessible to more borrowers and properties. With the lackluster numbers on permanent HAMP modifications and other widely reported problems, HAFA and short sales may become a bigger focus for policy makers, loan servicers, and REALTORS® in 2011.

One particularly notable change announced relates to HAFA eligibility of vacant properties. Previously, only properties which were vacant for 90 days due to employment-related moves of more than 100 miles were typically eligible. Under the new HAFA guidelines, previously owner-occupied properties which have been vacant or rented for up to 12 months are eligible as long as, among other things, the seller has not purchased another property in the interim.

The new guidelines are effective Feb. 1, 2011, and are not applicable for, among others, loans owned or guaranteed by government owned or sponsored entities including Fannie Mae, Freddie Mac, FHA and VA.

From January 26th, 2011. Market Matters Weekly Advisory
Reprinted with permission of the CALIFORNIA ASSOCIATION OF REALTORS®



Contact me if you have any questions or need any help,

Oliver Graf

Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360

Exactly what is a Short Sale?

A short sale describes a Real Estate transaction in which a sellers
lender or lenders (depending on how many mortgages there are) agree
to allow the homeowner to sell the property for an amount less
than what is owed on the loan(s).

The consent of the seller’s lender(s) is needed because without
it there wouldn't be enough money from the sale to pay off the
lenders in full in addition to the other costs of the sale (like
commissions and other closing costs.)

As a result, the lender’s lien(s) would remain on title, and
the homoeonwer selling the property would be unable to
transfer title to the buyer free of monitary liens.

Simply put, a short sale is where the lender agrees to allow
the homeowner to sell the property for less than what is owed
on the mortgage (s).

Peroperties that are worth less than the amount owed to the
secured lender(s) are often referred to as being “under water”
or distressed properties.

Big Industry News affecting Short Sales in California...

Big Industry News affecting Short Sales in California...

Senate Bill 931 was recently passed giving much relief
to sellers who are in a short sale position.

The bill expands existing anti-deficiency laws for first lien
holders regarding loans secured by properties of 1-4
units to short sales and took effect on January 1, 2011.

This is BIG for Sellers, Investors, and Agents!

In part, the new law provides that: "No judgment shall be
rendered for any deficiency under a note secured by a first
deed of trust or first mortgage for a dwelling of not more than
four units, in any case in which the trustor or mortgagor sells
the dwelling for less than the remaining amount of the indebtedness
due at the time of sale with the written consent of the holder
of the first deed of trust or first mortgage."

Simply put, California sellers who are granted a short sale
by a lender holding a first mortgage will now be exempt from
a deficiency judgment.

This is great news for any of your deals your currently working on
and great news for the business over the next year!

One of the most discouraging aspects for a homeowner facing
a short sale is the threat of deficiency they will experience for
selling their property short.

Fortunately, with Senate Bill 931 homeowners will no longer
be responsible for a deficiency on first mortgages in California.

Full text available here:
http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0901-0950/sb_931_bill_20100930_chaptered.html

What impact do you think this will have on the market and sellers in general?

To your success,

Oliver Graf

Real Estate Expert

Follow me on Twitter: Twitter.com/OliverGraf360



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How to Price a Property correctly - Sell Real Estate FAST

How to Price a Property correctly so you can sell it quick and get the most amount of money - Sell Real Estate FAST

When you put a property up for sale, the price you set is the most critical factor in terms of the return you’ll receive on your investment. That’s why you should always get a professional evaluation before deciding the price (You can contact me anytime if you would like a FREE help pricing property). Look at the facts and do an honest assessment of the property, based on several factors, including but not limited to:


• Market conditions
• Condition of your home
• Repairs or improvements
• Selling timeframe


In real estate terms, “market value” is the price at which a particular house, in its current condition, should sell within 30 to 90 days.

If the price of your property is too high, this could cause several things:

• Limits buyers visiting the property. Potential buyers may not view the home because it appears to be out of their buying range or “over priced”.

• Limits the number showings. Other salespeople may be more reluctant to view your home and show it to their prospective buyers.

• Used as leverage against you. Other Realtors® may use the price of the subject property to drive the sale of other homes that are more competitively priced.

• Longer time on the market. When a home is on the market too long, it may be perceived as “stale” or defective. Buyers wonder, “what’s wrong with the property,” or “why hasn’t this sold yet?”

• Lower price. An home that is priced too high, still on the market beyond the average selling time, could lead to a lower selling price in the end. To sell it, you will have to reduce the price – sometimes more than once. In the end, you run the risk of getting less than if it had been properly priced in the first place.

• Wasted time and energy. A bank appraisal is most often required to finance a home, so if it is overpriced it will not appraise and they buyers lender will force a reduced price.

Real Estate Professionals have known it for years – well-kept homes that are priced right from the start get you the fastest sale for the best price! And that’s why you need a highly trained professional to assist you in the selling of your home.

Often, in a seller’s market, homes that are priced slightly below market value initially will sell for more, simply because of the extra interest they incite. This can be a risk, however, and when it comes to such a decision you can contact me for help any time.



If you have any other questions please contact me anytime


Oliver Graf
Real Estate Expert


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Real Estate Sales
Real Estate Buying
Real Estate Purchase
San Diego Based Real Estate Blog

5 Reasons to Avoid Foreclosure at all costs! - How bad is a Foreclosure?

5 Reasons to Avoid Foreclosure at all costs!

1) Unlike most negative credit items, having a foreclosure on your credit report is virtually impossible to “repair”

2) A homeowner will always have to disclose that they went through foreclosure on all future mortgage loan applications affecting future financing rates and program availability.

3) Major decrease on your credit report affecting a persons ability to get to get a car, personal loans, or credit cards.

4) When filling out rental applications you must disclose that you have went through foreclosure, greatly reducing the number of apartments available for rent.

5) Many Employers run credit checks when applying for a job, foreclosure is one of the main items putting potential new hires in jeopardy of not getting a job.

To your success,

Preston Matix
Real Estate Investor




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Real Estate Purchase
Real Estate Sales
Real Estate Buying
San Diego Based Real Estate Blog

Sentate Bill 94 - Does it hurt the chances for getting Loan Modificaion Help?

Sentate Bill 94 - Does it hurt the chances for getting Loan Modificaion Help?

The California Assembly recently passed Senate Bill 94, a bill that aims to protect homeowners from loan modification scammers. However, does it end up having the unintended consequence of eliminating a homeowner’s ability to retain an attorney to help them save their home from foreclosure.

The bill, which included an “urgency clause” and was set to start immediately. SB 94 prevents companies, individuals, and even attorneys… from getting up front fees or any other form of compensation until after the Loan Modification has been completed.

Supporters of the bill say that the state is currently over run with scam artists who take advantage of homeowners desperate to save their homes from foreclosure by charging exorbitant up front fees and then failing to deliver anything of value in return. In their opinion, by making it illegal to charge up front fees, they will be protecting consumers from being scammed.

While there’s no doubt that there have been unscrupulous companies that have taken advantage of homeowners in distress, the number of these “con artists” is unclear. It was time for something to be done, but does SB94 fix or worsen the problem?

Supporters, state that homeowners will still be able to hire attorneys, but that the attorneys will now have to wait until after services have been rendered before being paid for their services. They say that attorneys, just like real estate agents and mortgage brokers, will now only be able to receive compensation after services have been rendered.

People who oppose the bill on the other hand say, “Getting a lender or servicer to agree to a loan modification takes months, sometimes six or nine months. If I worked on behalf of homeowners for six or nine months and then didn’t get paid by a number of them, it wouldn’t be very long before I’d have to close my doors. No lawyer is going to do that kind of work without any security and anyone who thinks they will, simply isn’t familiar with what’s involved. Real estate agents get paid through escrow, where is our security”

Take a look in the future…
California’s ALT-A and Option ARM mortgages are just beginning to re-set, one third of these types of mortgages are still set to adjust in the next 24 months! This will cause homeowners payments to rise, and with almost half of the mortgages in California already underwater, these homeowners will be unable to refinance and foreclosures will increase as a result.


For more information take a look at SB94: http://info.sen.ca.gov/pub/09-10/bill/sen/sb_0051-0100/sb_94_cfa_20090327_152419_sen_comm.html

Does SB 94 end up reducing the number of legitimate firms available for homeowners to turn to? Will SB 94 actually stop con artists from taking advantage of homeowners in distress? Or will it end up only stopping reputable lawyers from helping homeowners?



To your success,

Oliver Graf
Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360



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Real Estate Pre-Foreclosure
Real Estate Short Sale
Real Estate Loan Modification
San Diego Based Real Estate Blog

Short Sale Success! Wachovia short sale with 3 loans!!

The short sale of real estate is not a questionable practice in today's softening real estate market, it may be a necessity. The short sale transaction is a legal and much more beneficial alternative to foreclosure or even bankruptcy. Lenders are motivated to accept short sale offers to for a number of good reasons. The short sale of your home can result in a win-win-win situation for all parties involved

Our latest short sale success was on a property that had 3 mortgages and over 5k in back HOA payments!




1st Lender: Wachovia
2nd Lender: Wachovia
3rd Lender: Dyckoneal


Our team was able to negotiate with all lenders to agree to the short sale terms and pay off ALL the HOA arrears!

Please contact me for NO COST help with short sales!


To your success,

Oliver Graf
Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360



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Real Estate Submit Short Sale
Real Estate Short Sale
Real Estate Avoid Foreclosure
San Diego Based Real Estate Blog

How to Submit a Real Estate Short sale: What you need to know

How to Submit a Real Estate Short sale: What you need to know...

Submitting the Short Sale

So you have met with(or are) the homeowner and have the property on the market getting the proper exposure. Now it’s time to prepare the documents and submit for a short sale. This is the most time consuming part of the Short Sale process especially if you do not stay organized and take notes on all your conversations with the lenders.

What the real estate agent will need:

Authorization to Release Information: This form allows your real estate agent, escrow company, and title company to talk to a lender on behalf of the borrower. The lender will not talk to anyone unless they have this on file.

CMA: With the current Active, Pending, and Sold properties going 90 days back(close of escrow)
Listing Contract: The Listing Contract, Short Sale Addendum, and MLS printout.
Offer to Purchase: Retail offer to purchase on the subject property


What needs to be provided to the lender(Including everything listed above):

Financial Worksheet: Shows your assets, liabilities, and expenses. Great tool for presenting the borrowers current “hardship” to the lender.
Proof of income: You will need the last 2 pay stubs and last 2 years W2's. If you are self-employed, you will need last 2 years tax returns and a Profit and Loss statement for the past 3-6 months.
Bank Statements for the past 2 months: Showing balances and spending history.
Hardship Letter: This is where the borrower has the opportunity to “state their case” to the lender. Why did the situation occur? Why do you need to sell? What is going on with your hardship now?
Last 2 years of tax returns: All pages are needed and if you filed an extension, submit the extension paperwork.


Once you have all of the paperwork together, send it all at once and as soon as possible. Make sure it's complete and legible. Also, make sure you are constantly following up because the lenders a overwhelmed with requests and sometime lose track of progress. There is a long line of borrowers ahead of you so if the file is missing anything, you will get notice but the file will go to the bottom of the pile again.

What have you noticed in your short sale experience?

If you need any help with short sales, contact me today!


To your success,

Oliver Graf
Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360



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Real Estate Submit Short Sale
Real Estate Short Sale
Real Estate Avoid Foreclosure
San Diego Based Real Estate Blog

How to get more Short Sale Business Tip #1 of 8 (For Investors, Realtors, and Brokers)

How to get more Short Sale Business Tip #2 of 8 (For Investors, Realtors, and Brokers)

Tip #1 of 8 on how to get more Short Sale Business

I am committed to growing your business by providing
marketing tips and structuring the short sale so you keep your full
commission and do minimal work.

This tip is all about:

CALLING EXPIRED SHORT SALE LISTINGS.

A MLS search can provide another piece of useful information that most
agents don’t utilize.

An expired short sale listing can sometimes be up for the taking. Approach
the seller by explaining that their property most likely didn’t sell because it was not priced correctly. This can be quite common with the constant fluctuation in the market.

Setup a search in the MLS to deliver updates
to you every day with the following criteria:
1. Expired listings
2. Short sale
3. Price range and location you want to work

By offering them a no-cost solution to their problem by using YOUR listing
experience and Short Sale Pros negotiation expertise, they have the best chance at
selling their home, saving their credit, and insuring their ability to purchase again.


What other methods are you using to take advantage of the short sale market? Look out of tip 2 coming out soon!


Keep in mind, you can contact me anytime to help get your short sales closed, with our model you keep all your commission and do none of the work!

To your success,

Oliver Graf
Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360



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Real Estate Foreclosure
Real Estate Short Sale
Real Estate Avoid Foreclosure
San Diego Based Real Estate Blog

What is the Credit Impact of a Short Sale vs Foreclosure?

I was recently asked the question by a homeowner going into foreclosure…

What is the benefit of going into a Short Sale vs Foreclosure?

Although this is a question we get asked with nearly every client, this particular client wanted to know all the exact specifics. Since you are reading this now, you can probably benefit from the information that we found out when digging even deeper into the issue of what is the best option for most homeowners: Short Sale or a Foreclosure?

After doing all the research I am convinced now more than ever that the decision is a no brainer for most homeowners… A Short Sale is the OBVIOUS choice. Take a look at an email I sent to this client and see for yourself:

“Hope your doing well. We have been playing a little phone tag lately it seems, give me a call back when you get the chance.

After our conversations, you sparked an interest in me getting to the bottom of the question Short Sale vs Foreclosure?

Along with finding out great information on the mortgage debt forgiveness relief act:
http://realestateblog360.blogspot.com/2009/04/what-is-mortgage-forgiveness-debt.html

I also recently contacted Fannie Mae to get their latest guidelines as far as the exact credit impact of a Short Sale versus a Foreclosure, which I thought would be helpful to you in your research:

Short Sale: Fannie Mae refers to these as “Preforeclosure Sales” and requires only a 2 year waiting period after the sale, with acceptable re-established credit to re purchase.

Foreclosure: Standard minimum 5 years waiting period, with minimum of 10% down & 680 credit score for 7 years to re purchase. Primary residences only, no second homes or investment property loans for 7 years.

Take a look at the full report: https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0816.pdf

Give me a call when you get the chance and we can discuss how you wish to move forward.”

Meaning: If the property owner goes through a Short Sale they will be able to purchase a home again in the next 2 years. A foreclosure on the other hand, they will have to wait at least 5 years!

The question is simple: Do you want to purchase a home again in 2 years or 5?

Who would want to do a foreclosure? Which do you think is better?

Contact me anytime for help or questions,

Oliver Graf
Real Estate Expert


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Real Estate Foreclosure
Real Estate Short Sale
Real Estate Avoid Foreclosure
San Diego Based Real Estate Blog

Obama Announces Big $$ Incentives on Short Sales for Lenders and Homeowners

With around 43,000 notices of default last month in California alone, now more that ever the industry is in need of a Foreclosure Alternative Program.

I am so happy to see that the Obama administration has recognized the need to streamline the short sale and deeds-in-lieu process, and has provided viable options to homeowners who have fallen behind on their mortgages or owe more than their homes would sell for in today’s market.

The Obama administration announced the new details under its Foreclosure Alternatives Program (FAP) enabling lenders and borrowers to pursue Short Sales and Deeds-in-lieu of foreclosure in cases where the does not qualify for a Loan Modification. The program requires that before proceeding with a foreclosure, lenders must determine if a short sale is appropriate, if that is not successful, a deed-in-lieu of foreclosure.

They are even providing incentives for homeowners and lenders!

Borrowers (Homeowners). Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the Home Affordable Modification program but don’t qualify for a modification or do not successfully complete the three month trial period. Before proceeding with a foreclosure, servicers must determine if a short sale is appropriate.

Incentives. Incentives include: (1) $1,000 for servicers for successful completion of a short sale or deed-in-lieu of foreclosure; (2) $1,500 for borrowers/homeowners to help with relocation expenses; and (3) up to $1,000 toward the cost of paying junior lien holders to release their liens (one dollar from the government for every $2 paid by the investors to the second lien holders).

Standardized Documents. The program will include streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use of the short sale option.

Property Valuation by Appraisal or BPO. Servicers will independently establish both property value and minimum net return to the bank, in accordance with investor requirements. The price may be determined based on an appraisal or one or more broker price opinions (BPOs)

Timeline. In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to market and sell the property, or up to one year, depending on market conditions. Property must be listed with a licensed real estate professional and no foreclosure may take place during the marketing period (at least 90 days) specified in the Short Sale Agreement.

Commissions. The Short Sale Agreement must specify the reasonable and customary real estate commissions and costs that may be deducted from the sales price. The servicer must agree not to negotiate a lower commission after an offer has been received.

No Borrower Fees. Servicers may not charge fees to borrowers/homeowners for participating in the FAP. Contact Short Sale Pros for 100% Free Short Sale Help

Program Expiration. Starts May 14th 2009 and is in effect through 2012.



For the full report take a look at
http://www.treas.gov/press/releases/docs/05142009FactSheet-MakingHomesAffordable.pdf



How do you think the Foreclosure Alternatives Program will help the thousands of struggling homeowners? Do you think this is the best way to fix the problem?




Contact me anytime,


Oliver Graf
Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360



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Real Estate Foreclosure
Real Estate Short Sale
Real Estate Avoid Foreclosure
San Diego Based Real Estate Blog

California cracks down on "Foreclosure Consultant" Scam Artists

Beware of so called "Foreclosure Consultants"!

With the current state of the economy and the down turn of the Real Estate market its times like these where we see all the opportunistic Sharks coming out of the water! They are preying on desperate homeowners during moments of weakness… charging up front fees… and then NOT Performing the Service they said they said they would perform.

California Foreclosure Consultant Act aims to protect Families from these scam artists

The California Foreclosure Consultant Act Summary.

If a Notice of Default has been recorded against your home, this law will prevent a “foreclosure consultant” (even a real estate licensee) from charging fees in advance(in any form) to help you work out a loan modification or in some other fashion avoid foreclosure.

If a Notice of Default has not been recorded on your home it may be permissible for a real estate broker to assist you in obtaining a loan modification. Although in this narrow circumstance the broker can ask for advance payment they must provide you with a written contract which satisfies certain specific statutory requirements(and is compliant with the local real estate board).

Along with that, the contract must have been previously submitted to the California Department of Real Estate for review and received a “no objection letter” regarding its use. Real estate brokers who do not charge an advance fee for loan modifications or similar services are not required by the DRE to obtain a "no objection letter." However, their work must be completed before they’re paid.

You should know that there are agencies, attorneys, and real estate licensees who will assist you with your loan workout for a fee payable after the work is completed.

Attorneys licensed in California rendering services in the course of their legal practice are exempt from this law.

Definitions for Foreclosure Consultants

This Act defines a "Foreclosure Consultant” as anyone who offers for compensation to perform any service which "the person will in any manner do any of the following."

• Postpone or stop the foreclosure sale
• Obtain any forbearance
• Assist in the reinstatement of the loan
• Obtain extensions to reinstate the loan
• Obtain any waiver of an acceleration clause
• Save the residence from foreclosure
• Avoid or repair adverse credit reports resulting from a foreclosure sale
• To assist in recovering residual proceeds from the foreclosure sale of the owner’s residence.

Right to Cancel must be specified-

Under this section the owner is given 3 business days to cancel the contract and specifies the method of notice of cancellation.


Once operative the new law will require a Foreclosure Consultant to register with the Department of Justice and maintain a surety bond of $100,000.00. The Department of Justice will have the power to refuse to issue, or to revoke a Foreclosure Consultant’s registration. A violation of these provisions will be a crime. These changes will effectively give the Department of Justice oversight over California Foreclosure Consultants.

If you or someone you know is, or is about to be, in default on their home mortgage, and are approached by an individual or company that is offering to, in some fashion, “save the home from foreclosure” be sure they are reputable and only get paid when they perform!

What programs have you seen out there that this will affect?


When we are performing out Short Sale service for homeowners we make sure that we NEVER charge any fees! The goal is to help as many families as possible, NOT take advantage of them.


For any additional questions contact or visit:
http://www.realtytrac.com/interior/ccsection2945.htm


To your success,

Oliver Graf
Real Estate Expert


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Real Estate Foreclosure
Real Estate Help
Real Estate Avoid Foreclosure
San Diego Based Real Estate Blog

Lenders pay 6% commission on Short Sales - Great news for Realtors!

Lenders pay six percent commission on Short Sales!

6% Commision guaranteed by Fannie Mae on Short Sales!

Great news for Real Estate Agents who are working short sales…. Now companies servicing any Fannie Mae loan products can no longer force real estate agents to reduce their commissions as a condition to a short sale getting approved.

Fannie Mae stated, “Effective March 1, 2009, closing of pre-foreclosure sales may not be conditioned upon a reduction of the total commission to be paid to real estate agents to a level below what was negotiated by the listing agent with the borrower, unless the fee exceeds 6 percent of the sales price of the property in aggregate.”

So now any agents will no longer be forced to take commission reductions to service short sales. When you submit the short sale package be sure to check in advance to see if the loan is a Fannie Mae Product.

How do you think this will affect the Short Sale process for agents?

For any help with Property Foreclosure or Short Sale questions contact:



To your success,

Oliver Graf
Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360



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Real Estate Short Sale
Real Estate Upside down
Real Estate Short Sales
San Diego Based Real Estate Blog

How will Obama's Bailout affect Modifications and Short Sales?

New Obama Bailout, Modifications and SHORT SALES... How will this affect us?

There is a lot of buzz going on today with this Bailout and what is going to do for everyone. These questions and answers were posted at a White House Forum to inform the public of Obama’s new plan.

Lets get Started:

• I owe more than my property is worth, do I still qualify to refinance under the Homeowner Affordability and Stability Plan?

Eligible loans will now include those where the new first mortgage (including any refinancing costs) will not exceed 105% of the current market value of the property. For example, if your property is worth $200,000 but you owe $210,000 or less you may qualify. The current value of your property will be determined after you apply to refinance.

There is not many Homeowners that are as low 105% . .its more like 150%!

The cold hard truth is that most homeowners are tens of thousands of dollars upside down on property value.

• I do not live in the house that secures the mortgage I’d like to modify. Is this mortgage eligible for the Homeowner Affordability and Stability Plan?

No. For example, if you own a house that you use as a vacation home or that you rent out to tenants, the mortgage on that house is not eligible. If you used to live in the home but you moved out, the mortgage is not eligible. Only the mortgage on your primary residence is eligible. The mortgage lender will check to see if the dwelling is your primary residence.

This wasn’t a surprise. . but it gives you notice that if you are thinking of moving out of your home before you find an option to settle your mortgage. .you will not be eligible if you are already living somewhere else.

This is also a big concern because a majority of Americans that are under water right now are Investors. Meaning they own more that a few properties which are all going to need a loan modification.

• How do I know if I am eligible?

Complete eligibility details have been announced on March 4th when the program started. The criteria for eligibility will include having enough provable income to make the new set mortgage payments along with a decent mortgage payment history. The program is limited to loans held or securitized by Fannie Mae or Freddie Mac.

• Will refinancing lower my payments?

The objective of the Homeowner Affordability and Stability Plan is to provide credit worthy borrowers who have shown a commitment to paying their mortgage with affordable payments that are sustainable for the life of the loan. Borrowers whose mortgage interest rates are much higher than the current market rate should see an immediate reduction in their payments. Borrowers who are paying interest only, or who have a low introductory rate that will increase in the future, may not see their current payment go down if they refinance to a fixed rate. These borrowers, however, could save a great deal over the life of the loan. When you submit a loan application, your lender will give you a "Good Faith Estimate" that includes your new interest rate, mortgage payment and the amount that you will pay over the life of the loan. Compare this to your current loan terms. If it is not an improvement, a refinancing may not be right for you.

EVERYONE needs to call their bank to see if they can get into a better loan! Even if you loan is not due to adjust for another year, I still recommend you contact now to get into a new today! You don't wait to wait until your loan adjust before you start working on it, that's how people get into trouble!

• 
  Will refinancing reduce the amount that I owe on my loan?

No. The objective of the Homeowner Affordability and Stability Plan is to help borrowers refinance into safer, more affordable fixed rate loans. Refinancing will not reduce the amount you owe to the first mortgage holder or any other debt you owe. However, by reducing the interest rate, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan.

No Way! Other than doing a short sale there is never a way to reduce principle balance!

• Do I need to be behind on my mortgage payments to be eligible for a modification?

No. Borrowers who are struggling to stay current on their mortgage payments may be eligible if their income is not sufficient to continue to make their mortgage payments and they are at risk of imminent default. This may be due to several factors, such as a loss of income, a significant increase in expenses, or an interest rate that will reset to an unaffordable level.

If you see your financial situation changing in the future, Modify Now or Short Sale Now!!

• How do I know if I qualify for a payment reduction under the Homeowner Affordability and Stability Plan?

In general, you may qualify for a mortgage modification if (a) you occupy your house as your primary residence; (b) your monthly mortgage payment is greater than 31% of your monthly gross income; and (c) your loan is not large enough to exceed current Fannie Mae and Freddie Mac loan limits. Final eligibility will be determined by your mortgage lender based on your financial situation and detailed guidelines that will be available on March 4, 2009.

• I have two mortgages. Will the Homeowner Affordability and Stability Plan reduce the payments on both?

Only the first mortgage is eligible for a modification. One a short sale both banks will negotiate both down.

If you are very upside down on your property and don't really see yourself being able to afford the payments in the future, do a short sale now!

I recently read somewhere that over 50% of loan mods go back into default!

• How much will a modification cost me?

There is no cost to borrowers for a modification under the Homeowner Affordability and Stability Plan. If you wish to get assistance from a HUD-approved housing counseling agency or are referred to a counselor as a condition of the modification, you will not be charged a fee. Borrowers should beware of any organization that attempts to charge a fee for housing counseling or modification of a delinquent loan, especially if they require a fee in advance.

There is a lot of nonprofit loan mod companies out there. I suggest you hunt one down and go with them!

• Is my lender required to modify my loan?

No. Mortgage lenders participate in the program on a voluntary basis and loans are evaluated for modification on a case-by-case basis. But the government is offering substantial incentives and it is expected that most major lenders will participate.

I think this is going to open a lot more doors for people that where previously out of luck.

• I owe more than my house is worth. Will the Homeowner Affordability and Stability Plan reduce what I owe?

The primary objective of the Homeowner Affordability and Stability Plan is to help borrowers avoid foreclosure by modifying troubled loans to achieve a payment the borrower can afford. Lenders are likely to lower payments mainly by reducing loan interest rates. However, the program offers incentives for principal reductions and at your lender’s discretion modifications may include upfront reductions of loan principal.

Shot Sale Time! If you owe a lot more than what your house is currently worth and you don't see your equity coming back up for 10 years.. . you should start thinking about doing a short sale as long as you can't make your payments anymore.

I think that Shorts Sales are great option for a lot of people!! The best part is that it cost the Homeowners nothing!

Lenders will not negotiate on short sale that is being purchased by one of your relatives.

A Short Sale helps every party involved! The bank will always net more with a short sale than with a foreclosure.

The Realtor or Mitigation Company negotiating your short sale should have sufficient knowledge with short sales. Sometimes get get a little tough to do and that is why you want to make sure you have a Pro!

No matter what the size of your loan the chances are a short sale will work for you!

For any help with Property Foreclosure questions contact:

Sam Khorramian
Success Expert


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New law extending the foreclosure process by 90 days!

BIG HELP FOR STRUGGLING HOMEOWNERS!

90-DAY EXTENSION TO FORECLOSURE PROCESS
California Foreclosure Prevention Act: Mortgage Lenders foreclosing on certain loans are prohibited from giving a notice of sale until the lapse of at least 3 months plus 90 days after the filing of the notice of default A loan servicer can obtain an exemption from this requirement by demonstrating that it has comprehensive loan modification options.

The goal of the California Foreclosure Prevention Act is to release the pressure on foreclosures and their severely negative consequences. Aiming to provide additional time for lenders to work out a short sale or loan modification with borrowers while also providing incentive for lenders to establish better short sale and loan modification programs.
This bill, which was enacted into law on February 20, 2009 will stay in effect only until January 1, 2011
With the current time-line, a lender who files a notice of default has to wait at least 3 months before giving a notice of sale. The new law extends that 3-month period by an additional 90 days.
Along with that in the preexisting law, foreclosure process would take a minimum of 4 months from the filing of a notice of default until the final trustee’s sale.

Under the new law, that period extended by 90 more days for a total of about 7 months.


Is this positive or negative? How do you think that this will affect the market?



For any help with Property Foreclosure questions contact:

Oliver Graf
Real Estate Expert

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Foreclosure Process Time Line

General Foreclosure Timeline

The time line below is a typical California non-judicial foreclosure. The foreclosure process does not begin until the lender feels they have tried all avenues for fixing the payment delinquency. Normally, this will happen after the borrower has missed 3 monthly mortgage payments. The lender will contact the borrower several times prior to beginning the foreclosure process .The official foreclosure process then begins by the lender contacting a Trustee and instructing them to file a Notice of Default.


Day 1 - Notice Of Default recorded with County Recorder

The first 10 business days - Trustee mails Notice of default to borrower(s) with recording the date

1st month- Lender Mails Notice of Default to borrower again

90 days after Notice of Default - Set Sale Date, time and location Unless a bankruptcy has been filed, or other event occurs that holds the timeline( At this point Short sale is a great last resort option http://www.shortsale2020.com )

25 days before Sale Date- Send Notice Of Sale to IRS (if applicable)

20 days before Sale Date- Begin publishing Notice Of Sale in an adjudicated newspaper. (must run for 3 consecutive weeks).

20 days before Sale Date- Post the Notice of Sale on the property itself. Most services will photograph the posting location for your records.

20 days before Sale Date- Mail Notice of Sale to borrower and required parties.

14 days prior to Sale Date- Record Notice of Sale with county recorder's office

5 days prior to Sale Date- The borrower's right to reinstate expires.

On sale Date- The property is sold to high bidder or reverts back to lender

For any help with Property Foreclosure questions contact:

Oliver Graf
Real Estate Expert


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