Maryland Short Sales 301-343-7671

According to RealtyTracs July Foreclosure Market Report, Maryland posted one of the highest percentage increase in foreclosure activity.

Maryland reported a 35.11% increase in foreclosure activity versus July of 2009, second only to Michigan.  Nationally we are seeing a year over year decrease in the huge foreclosure states of Florida, California, Nevada and Arizona but Marylands foreclosure activity continues to gather steam.

As a Maryland homeowner this is very discouraging as it means that we will most likely see housing values continue to deteriorate.  If you are a Maryland homeowner facing mortgage issues, contact a professional today. There are many resources available to you to help avoid foreclosure.

If you would like to schedule a free consultation about your situation contact us today.

As I am preparing to teach another class on Short Sales another Realtor asked me the question, WHY DON’T SHORT SALES WORK?   Considering that I am somewhat of an expert in the Short Sale process, it did not take long before I started ranting about the various reasons that a Short Sale may not be successful.  However, I keep coming back to two primary reasons that Short Sales fail and I will summarize them below.

1. The Realtors involved in the transaction–  I know that I have written numerous posts about why this is important, and I don’t want to beat a dead horse, but the horse deserves it !   The groundwork for a successful short sale is laid in the initial conversation between Realtor and Homeowner.  The Realtor must COMPLETELY understand the following:

• The different programs available from the servicer/lender.  See not all short sales are created equal.  Each lender/servicer may have their own programs in addition to programs the Obama Administration has put together.
• The investor involved in the transaction.  See your mortgage may be serviced by Bank of America, but someone else actually owns the loan.  The loan could be owned by Fannie Mae, Freddie Mac, FHA, VA.  It could be owned by the bank itself or by a private investor.  Determining who actually owns the loan is critical, because it will help your Realtor identify an appropriate strategy.
• The internal process for your servicer/lender and how to deal with Loss Mitigation.  Your Realtor must have the time, patience and intestinal fortitude to deal with the Loss Mitigation or homeowners assistance team.  See many of the banks employees need to be trained as well, so it is your Realtors job to educate the bank on the process.
• Educating the prospective buyer and buyers agent.  Your realtor must be able to educate the buyers agent on the Short Sale process and set reasonable expectations.  If the buyers agent and prospective buyer are not properly educated then you can rest assure that the Short Sale will not close.

2.  The Appraisal or BPO — Once you have a buyer for your property and the mountains of paperwork have been submitted the lender/servicer will order a BPO (which is short for a Brokers Price Opinion)  a BPO is basically a Realtors opinion of what the house is worth.  Sometimes the lender/servicer will order a full appraisal.  This is a Critical step in the Short Sale process, see if the appraisal or BPO comes in much higher than the offer, the lender/servicer may not approve the short sale.  Your realtor should make sure that they are PRESENT when the appraisal or BPO is done.  The Realtors job is to make sure that the BPO agent or Appraiser does an accurate and fair valuation of the property.

The Short Sale process can be complicated and filled with landmines but if your Realtor understands the process and anticipates these landmines your outcome should be positive.

If you are a Maryland homeowner and are concerned about your abilities to pay you mortgage, contact me today for a free consultation.

The Mortgage Bankers Association reported on Thursday that 9.9% of homeowners nationwide have missed at least 1 mortgage payment.  This is a staggering number and is scary when you consider the impact housing has on our overall economy.  To make matters worse here are a couple other tidbits that we learned this week:

1. 10.1 Million people are receiving unemployment assistance
2. The inventory of unsold homes is now at 12.5 months up from 8.9 months in June
3. Existing homes sales in July were down 27% from June and at their lowest level since 1999.
4. If Fannie Mae and Freddie Mac were to unload their inventory of Foreclosures, it would double the amount of homes sold last year.

All of this is VERY troubling news, and for those of you who think we are at the bottom of the housing market, WELL HOLD ON !   Unfortunately, JOB CREATION IS THE KEY, and until we can create more jobs we will continue to see more foreclosures, short sales and depressed values in housing.  It is time for homeowners to stand up and speak out !

OK, this post is designed for Maryland Homeowners who would like to Short Sale their home.  I have outlined several steps to follow as well as thoughts to consider.

1.    Find a Qualified Real Estate Professional–   This is probably the most important step you can take in order to successfully Short Sale your home.  The rules have changes and there are several programs available that may benefit you.  Not all Short Sales are created equal, it is imperative to understand who the investor on your loan is.  Just because Bank of America services your loan does not mean they own or back the loan.

2. Contact your Servicer –  Don’t wait contact your servicer immediately!  It is imperative that your servicer notate the file.  Ask your servicer what steps you should take to Short Sale your home?

3. Prepare your Short Sale Package –  The Short Sale package will typically consist of  Hardship letter, 2 years tax returns, Financial Statement, 2 most recent bank statements, 2 most recent paystubs.  However, each servicer may have specific documents that are also required, so it is important to ask your servicer for their list.

4.  List the Property–  When it comes to listing the property your Realtor will help you with this, but keep in mind.  You will not receive any proceeds from the sale of the home. The property should be priced VERY COMPETITIVELY!   Remember a Short Sale is a long process and typically the buyer will want to purchase the property for less than fair market value.

Once you receive the contract your Realtor or attorney will start the negotiation process with the lender.  It is imperative that your Realtor or Attorney stay in constant contact with your lender.  I would recommend that they make a minimum of 2 contacts per week until the lender has approved the Short Sale.

Thoughts to Consider?

1.  How will you handle the Deficiency?

2. Do you have funds available to contribute?

3. Have you considered Bankruptcy as an option?

4. Have you attempted or considered a loan modification?

5. Do you currently have $5,000 or 3 months mortgage payments in your checking account?

Short Sales can be very simple or very complicated depending on the quality of advice that you receive.  Once again, this is why it is imperative that you choose an educated Real Estate Professional to walk you through the process.

On Friday the Treasury Department released the latest results of our Administrations Home Affordable Modification Program or HAMP.   The results are embarrassing to say the least and continue to provide evidence that new programs need to be designed to aid borrowers.

Here are a couple of numbers that illustrate the ineffectiveness of the program:

1. As of July 2010 616,839 HAMP trials have been canceled out of the 1,307,489 trials started since the program began.    SO 47% OF ALL HAMP TRIALS HAVE FAILED!
2. Hope Now estimates that over 4 Million Homeowners are 60 days or more behind on their payments!

Clearly Maryland Homeowners have more options today than in the past to help them through these difficult times.  However, for some reason the programs that are available clearly are not enough.  I would anticipate some major restructuring of the current programs in the 4th quarter of 2010, so stay tuned.

If you are a Maryland Homeowner and facing mortgage difficulties, please do not wait to contact a professional to give you an assessment of your options and help develop the appropriate strategy.

FORECLOSURE IS NOT AN OPTION!

Many homeowners in Maryland are starting to receive letters from lenders stating that they may qualify for HAFA.  Unfortunately, many homeowners are not opening their mail to read what the lenders are offering.  In addition to this many Maryland homeowners, may qualify for HAFA and are not even aware.

HAFA Short Sales are very beneficial for homeowners in many ways.  Complete forgiveness of debt (no deficiency judgments), relocation allowances, a streamlined short sale process, just to name a few benefits.

With this being said, I am finding that the HAFA process in Maryland may not be so easy.  The lenders are imposing very strict timelines, scrutinizing paystubs, hardship letters, and all of the documents that the seller needs to provide.

If you are considering a HAFA Short Sale in Maryland, please pay special attention to the paperwork that you are signing and make sure that you are working with a true Maryland Short Sale Specialist.

Bank of Americas, Matt Vernon last week stated that Bank of America is rolling out a new Cooperative Short Sale program.  This program is targets homeowners that Bank of America believes may consider a Short Sale.

Letters are being mailed to homeowners that have been not qualified for HAMP or HAFA.  These homeowners have not requested a Short Sale, but Bank of America has identified these homeowners as individuals who may consider a Short Sale as a viable option to foreclosure.  The new program looks a lot like HAFA, below are the key features of the co-op Short Sale program:

1. Borrowers will receive $3,000 in relocation assistance
2. Streamlined Documentation process
3. No Deficiency Judgements
4. Borrowers will have up to 120 days to complete the sale
5. If the home does not sell borrowers will be given the option of a Deed-in-Lieu.

As I am always telling homeowners the loan modification, short sale, and foreclosure business is changing almost daily, so you need to stay tuned as next weeks new programs will be unveiled.

If you are a Maryland homeowners and are facing financial difficulties, contact me today to discuss your options.  It is imperative that you start the process of Short Sale or loan modification early as banks are being much more strict about delaying foreclosure sales.

Rumors are swirling and I have a credible source at Fannie Mae that has told me that Foreclosure Sales will NO LONGER BE POSTPONED during the Short Sale process!

This is will be a huge setback for our economy and housing market.  It seems that Fannie Mae and Freddie Mac are trying to prevent homeowners from “waiting till the last minute” then trying to Short Sale their property.  If you are a Maryland Homeowner and are facing imminent foreclosure DO NOT WAIT!

Fannie Mae and Freddie Mac are trying to streamline the default process in an expedited order

Loan Modification –  Short Sale — Deed in Lieu — Foreclosure

If you are a Maryland Homeowner considering a Short Sale, PLEASE START THE SHORT SALE  PROCESS TODAY!

Also, if you are an investor or home buyer and would like to find the best deals in Maryland, check out or new blog www.mdreoexperts.com this site is  designed to educate homebuyers on purchasing bank owned properties and short sales.

Well, here we go again, in the ever present desire to put an end to our nations housing crisis, our Government will be rolling out a NEW program for underwater borrowers.

On Friday, HUD in conjunction with FHA announced a program that will enable borrowers to refinance their current mortgages into an FHA Mortgage. Lenders will also have to write down 10% of the balance owed. I have obtained a copy of the mortgagee letter that will outline the details.

This is the latest efforts by The Obama Administration to help avoid a tremendous collapse in the housing market and spill to the overall economy.

As I am writing this article, I just got a news feed that according to Zillow 20% of homeowners are underwater.  Be prepared for massive changes in housing policy prior to the elections in November.

If you are a Maryland homeowner and are struggling with you mortgage give me a call today at 301-343-7671.  Considering a Short Sale, sign up for my free E Book.

OK, this post is really designed to give Realtors and Homeowners alike a chance to vent about the short sale process.  Please give us your short sale nightmares in Maryland.

I am in the middle of a Short Sale with ????????? lender and I swear the loss mitigation department IS ON CRACK!

I have contacted loss mitigation every 2 days to make sure that the file is being diligently worked on.  Each time I contact the Loss Mit. department I ask very detailed questions and notate who I spoke with, what time I spoke with them and the details of our conversation.

I always end the conversation by asking

“Is there any additional paperwork that you need at this time”

OK, well I have spoken to 5 different individuals in loss mitigation over the past 10 days and each one of these people have told me that the file is being reviewed by a processor/negotiator and “There are no additional documents needed”

Last night I get an email from the negotiator stating that the file is incomplete and we need to send updated paystubs, tax returns, and a financial statement.

Not only have I been told by 5 people that no additional documents were needed but ??????? lender ALREADY HAS THESE DOCUMENTS!

This is becoming a recurring nightmare not only with Wells Fargo, but with Bank of America, Citimortgage, Chase and the like.  No wonder buyers and sellers throw in the towel!

Thankfully, I anticipate these issues and understand that this will happen.  I also make sure that our files are being touched multiple times per week.  If you are an agent or homeowner YOU MUST FOLLOW UP WITH YOUR FILES SEVERAL TIMES PER WEEK!

Let me know your thoughts!