This week at the REO Expo Matt Vernon, short sale and REO executive at Bank of America made several bold statements.

“We’re going to do everything possible to liquidate property prior to foreclosure,” Vernon said. “REO will still be available, but we will do everything we can to do short sales.” Vernon said the goal is to get as close to market value as possible, or even over market value. “Short sales is not an investment strategy to get homes on the cheap,” he said.

Vernon went on to say that the real estate community will play a critical role in helping homeowners through the process. With that being said Vernon is encouraging homeowners to work with knowledgeable agents through the process.

“We are learning from the past where we struggled mightily,” Vernon said, “and from now as we still struggle. We need the best to execute these transactions.”

Maryland Homeowners if you are facing foreclosure, you just got a huge break!  Governor O’Malley signed the new foreclosure mediation bill into law last night, which will enable homeowners to have the last say prior to foreclosure.  The foreclosure mediation bill adds the following to the foreclosure process:

1. Lenders will be required to send an application for loan modification or other loss mitigation options at least 45 days prior to foreclosure actions being filed in court.
2. The homeowner has 15 days after receiving the lender’s final loss-mitigation affidavit, which states reasons for denial of a loan modification, to request a foreclosure mediation. The request must be sent to the Circuit Court, along with a $50 fee.
3. The mediation will be held to make one last attempt to prevent the foreclosure via loan modification or alternate loss mitigation option such as a short sale, forbearance or deed-in-lieu.

Maryland Homeowners our state is doing everything they can to help you prevent foreclosure.  However, you have to take action, do not sit around and wait.  If you need to discuss your situation in more detail and would like more information on your options, please contact me today at 301-343-7671 or email me at jnewman@kwflagship.com.

Many homeowners in Maryland are now starting to hear about HAFA, our governments initiative to streamline the short sale process.  Currently, the majority of lenders are participating in HAFA.  Bank of America, Wells Fargo, CitiMortgage and Chase to name a few.  Maryland’s new foreclosure regulations also are following the HAFA model and lenders should not foreclose if a homeowner is attempting a short sale

If you are a homeowner and are currently facing foreclosure or have been declined for a loan modification YOU MAY QUALIFY for HAFA.

There are two major advantages to HAFA.  The first is that the 1st lien holder will waive the right to any deficiency judgements.  The second major advantage is that homeowners may be compensated up to $3,000 in relocation expenses.

Unfortunately, loans that are backed by Fannie Mae or Freddie Mac do not qualify for HAFA as of today, but we anticipate both agencies to be unveiling a short sale program similar to HAFA.  Please contact me today at 301-343-7671 or email me a john@thinknewman.com  for a no obligation consultation to determine your eligibility.

Many homeowners are waiting too long to start the process of loan modifications, short sales or deed-in-lieu.  There is no reason that a homeowner should be foreclosed on today.  If you are behind on your payments first contact your lender then follow up with one of Maryland Housing Counselors.  A list of housing counselors are below.

HOPE Housing Counselors Network

Many homeowners ask me what impact a short sale will have on a homeowners credit. Here is an article that I found on CNN Money that gives a very detailed outline of the impact of foreclosure, short sales, missed payments etc.

http://money.cnn.com/2010/04/22/real_estate/foreclosure_credit_score/

If you are a Maryland homeowner and would like more information on Short Sales, Loan Modifications or foreclosure prevention call me today at 301-343-7671.  Remember, more options are available to you if you act quickly.

Fannie Mae, relaxed their lending guidelines for homeowners who have a Short Sale or deed-in-lieu on their credit.

In my opinion the lending giant is starting to realize that Short Sales and deed-in-lieus are good for all parties involved. Previously if a homeowner were to short sale or deed-in-lieu their property they would have to wait 4 years before they would qualify for a new loan. They just changed that requirement to 2 years. If a homeowner declares bankruptcy or has foreclosure on their credit, lending guidelines will remain the same.

f you are a Maryland homeowner and would like more information on Short Sales, Loan Modifications or foreclosure prevention call me today at 301-343-7671. Remember, more options are available to you if you act quickly.

If you are looking for advice on Short Sales, Loan Modifications or additional information on avoiding foreclosures contact me today. Maryland has passed several new legislation enabling homeowners to avoid foreclosure.

Many homeowners wait until its TOO LATE, don’t wait!

This is a short video from associates of mine in Arizona. This video will enlighten homeowners as to why loan modifications are not working.

If you are a Maryland homeowner and would like more information on Short Sales, Loan Modifications or foreclosure prevention call me today at 301-343-7671. Remember, more options are available to you if you act quickly.

Last night the Maryland General Assembly passed HB 472. This is the mandatory mediation bill introduced my Gov. O’Malley. This bill will enable homeowners to insist on mandatory mediation prior to a lender commencing foreclosure. Lenders also must be able to show that a loan modification or alternate loss mitigation options have been discussed.

Homeowners this is your chance to fight back, please contact me today at 301-343-7671 for a copy of the bill and understand your rights. I will update this post again with more details in the coming days.

Alex Charfen, CEO of the Distressed Property Institute discusses the lates changes to HAFA.

If you are a Maryland homeowner and would like more information on Short Sales, Loan Modifications or foreclosure prevention call me today at 301-343-7671. Remember, more options are available to you if you act quickly.