All Posts tagged how to short sale

FNMAE Short Sales; I learned something new..

By Kimberley Kelly 04 Jun, 2012 Short Sale Information, Short Sales how to short sale, short sale changes

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FNMAE short sale changes

I got a call on Thursday last week from a guy that claimed he was my contact for a FNMAE short sale at Atlas Mountain in Desert Hot Springs. What??? I get calls all the time from short sale negotiation companies claiming they can “help me close my deals.” I don’t need their help. I close 100% of my short sales. I did call the servicer, GMAC, and they confirmed he was for real.

Here’s the deal….(not sure if it’s ALL FNMAE backed notes, or just GMAC)

If the investor on your note is FNMAE, the negotiation company, Kazork, skips the Servicer completely, GMAC in this case, and negotiates my offer directly with the Investor (FNMAE). Sounds great, right? I hope so. I have already submitted offer + supporting docs to GMAC, so it’s a redo, but oh well.

I list the property at Kazork.com. Agents submit offers at their assigned list price or above, and they are negotiated within 30 days. The catch? I’m guessing their list price will be too high..same as with B of A COOP program.

Why the change? The guy tells me there has been extreme fraud on the part of Short Sale List Agents. They are submitting low offers, getting them sold, then turning them again on the other end! What??? I attach prices on my Short Sales that are typically 10% or so below Fair market value. They get accepted..often takes awhile, but there you go.

Anyway….could be good. Keep you posted.

Short Sales and Deficiencies in California; Round-up.

By Kimberley Kelly 24 Jan, 2012 Short Sale Information, Short Sales how to short sale, short sale questions, short sales

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This is not news, but it IS critical for any Seller thinking about listing their home as a Short Sale in California in 2012. Remember the MOST critical thing..the Debt Forgiveness Act expires on 12/31/2012. Will it be extended? Most likely. However..do you want to take that chance? Read on for a recap of our anti-deficiency law, 580e. It’s a fantastic protection for Short Sale Sellers in California!

One of the first things my Short Sale Clients ask me is, “How does the Deficiency work?” What they mean as a Short Sale Seller is, “Am I going to be sued for the deficiency by my Lender?

In a word, “no!”

The year of 2011 saw a very spescific change to the anti-deficiency law for the state of California. Section 580e of the California Code of Civil Procedure came into effect on Jan. 1. This law generally prohibited a FIRST TRUST DEED LENDER from obtaining a deficiency judgment. This law applied to 1-4 residential units.

Then on July 15, 2011 a bill was introduced that greatly broadened the powers of section 580e.

Now section 580e covers many types of mortgage loans for 1-4 residential units, including..
•Purchase Money
•Rate and term refinance
•Cash-out refinance,
•owner occupied
•rental
•second home or vacation home

(This Law has it’s exceptions! Other types of liens such as judgment liens, tax liens, or HOA liens are NOT exempt from deficiency pursuit by the note holders!)

WOW! Lots of encouragement from the Government to do a Short Sale instead of a Foreclosure.

So..you are protected from the second lien holder pursuit as well now. Your Lender may NOT..
•collect a deficiency
•have a borrower owe a deficiency
•request a deficiency judgment
•require a borrower to pay to get a short sale approved
•require a borrower to waive their rights

Tips:

Sellers: Although a Short Sale Lender cannot demand you contribute to get your short sale done, you may offer to pay something to get a deal to work.

Buyers: Carefully consider before you write your offer, HOW MUCH money a Lender is being asked to write off. Sometimes, if a Lender has to write off a huge deficiency, they COULD choose to not do a Short Sale and pursue their other options. Not a huge likelihood in California..but think about it.