Negotiation With Short Sale Lenders – Wilmington NC Short Sale

In working in the Wilmington NC Short Sale arena for the last 2 ½  plus years, I have seen lenders do just about everything when it comes to negotiating short sales with home owners. There really is no “standard” in short sales. The way one short sale file at one particular lender is handled can be totally different on the next.

One of the biggest reasons for this is that every lender has different investors that actually own the loans. There could be more than twenty five different investors that have interests in loans at one lending institution. So for example just because Bank of America may have done something for a home owner in one circumstance does not mean they would do the same thing for another home owner in the exact same circumstance.

More often than not this is because one investor may not have the same needs or requirements as another investor.

There are basically three scenarios for a seller when completing a short sale. They are a:

  • Cash contribution to the lender at closing.
  • Signing a promissory note to pay back some portion of the short sale debt.
  • A combination of these two things.
  • A complete debt removal.

The biggest consideration for most home owners completing a short sale is debt removal. My goal of course in any short sale is to get the most favorable terms and conditions for the seller which is a complete debt removal. Many lenders today want sellers to have some kind of “skin in the game” if they are going to grant a short sale.

In my experience the terms that most home owners get from short sale lenders is very favorable. Home owners are typically asked to bring a cash contribution or sign a note that basically amounts to pennies on the dollar compared to what they owe.

A typical scenario could be a home owner being substantially under water…..for argument sake let’s say $100,000. It would not be unusual for a lender to ask the seller to bring $5000 to the closing and letting the short sale take place. Another possibility if the seller does not have $5000 is to work out a promissory note. Maybe the lender asks for a$15,000 note to be paid back over the next five years at an attractive interest rate. As mentioned previously it could be a combination of these two options. These are just quick examples to give you an understanding of what happens in the short sale world on a daily basis.

There can be circumstances although not real often, where the lender will only accept a cash contribution in order to close. The short sale lender may have this requirement for one of the following reasons:

  • The seller has money in liquid accounts.
  • The seller has not been late with any      mortgage payments.
  • The cash contribution is a requirement of      waiving the deficiency (debt removal).
  • The seller has a good credit score and      are current with other debt.
  • The residence is an investment property.

One of the most difficult parts of going through a short sale as a seller is the long wait involved from the time you get an offer from a buyer until the time you actually begin negotiations with the lender. Sometimes there can be months in between the two. As a seller it is easy to feel in the dark and helpless. There can be times where you will be in this waiting game wondering what the lender is going to require of you and then their request finally comes. They ask you for a cash contribution that you just don’t have.

I have an outstanding short sale attorney that works on behalf of the seller with all of my short sale transactions. In a circumstance where the lender asks for a cash contribution that the seller just can’t come up with the first course of action will be to try to work out an amicable compromise with the lender/investor. This would typically be one of the following:

  • Negotiate to get the cash contribution      lowered to something the seller was able to bring to closing.
  • See if the seller can get the funds from      a family member or borrow from them.
  • Try to get the lender to accept a      promissory note instead.
  • Ask the buyer to pay the cash      contribution if lender allowed this to occur.

In the vast majority of the short sales I have been involved in we have been able to work it out so a compromise was reached and everyone got what they wanted. Should sale negotiations can be difficult at times but if you know what your doing common ground can often be reached.

What would you need to do in the rare instance where a large cash contribution was required that the owner just did not have and the lender would not budge? If all else fails what you would need to do in the scenario above is to put the home back on the market and build in a cash contribution to the lender right into the transaction.

So for example you would add a cash contribution for the lender on behalf of the seller on line 104 of the buyer’s side of the HUD settlement statement. You would also place the same contribution on line 404 of the seller’s side of the HUD as a “Cash Contribution To The Lender”. The payoff amount would then go to the lender.

This is how short sale negotiations work with lenders. If you know what you are doing you can usually find common ground. Of course there are numerous things to look for in a short sale contract which I have covered in a number of articles I have written.

If you are need to short sale your home or condominium in Wilmington NC, Leland NC, Hampstead NC, Wrightsville Beach NC, and Carolina Beach NC. I am successfully completing short sales throughout  these areas. So far, knock on wood, I have a 98% success rate for short sale approval! Short sales are specialized transactions that are critical to have the right Realtor representing you. Do not make the mistake of picking an agent that does not understand how to get to the closing table on a short sale. Nationally less than 30% of all short sales close!

 

Nilesh Jethwa

WILMINGTON NC SHORT SALE EXPERT

http://www.shortsalewilmingtonnc.com/



Bookmark & Share

Credit Scoring After Short Sale and Foreclosure Wilmington NC Short Sale

 

The other question that I get from folks considering a short sale is how it will impact their credit. There is a lot of misleading information that come from Realtors, as well as online forums about the impact on credit scores. On many occasions you will hear that a short sale is far better for your credit than getting foreclosed on. This is incorrect! A credit score in a short sale or a foreclosure have the potential to be about the same. Maybe marginally better in a short sale.

According to Fair Issac (My FICO) a company that provides analytic, decision making, and credit scoring services for financial service companies a credit score will go down by 40 to 110 points after being 30 days late. Further, the scoring drop will increase to 70 to 135 points after 90 days late on a mortgage payment.

The average scoring drop in a short sale, foreclosure or deed in lieu is 85 to 160 points. You need to keep in mind that in both short sales and foreclosure it is possible that the credit score drop could be closer to 200-300 points.

Credit scoring factors vary from individual to individual. The scoring change is heavily dependent on where the credit score was before the negative event took place. Both a short sale and foreclosure are considered a loan that was not paid as agreed.

What happens to your credit score in each of these events could be different than someone else who goes through the same financial event. Unfortunately, most of the time the higher the credit score the greater the decrease from where you started.

When trying to decide whether a short sale is right for you don’t be fooled into making the decision under false hopes that your credit will not be impacted all that much. The biggest advantage in a short sale is the shortened time frame in which you will be able to purchase a home in the future.   

One of the most important steps after going through either a short sale or foreclosure is to be conscious about trying to improve your credit standing. Here are some excellent tips on how to increase a credit score (contact me I will be glad to send you a pdf print out.)

*** The above information for waiting periods before buying a home after completing a short sale and foreclosure was sourced by the Fannie Mae and Freddie Mac selling guides along with the FHA handbook.

If you are need to short sale your home or condo in Wilmington, Hampstead, Leland, Rocky Point, Wrightsville Beach, or Carolina Beach get in touch! I would love to interview for the chance to represent your best interests. www.shortsalewilmingtonnc.com

I am successfully completing short sales throughout the Wilmington NC and Surronding areas. So far, knock on wood, I have a 98% success rate for short sale approval! Short sales are specialized transactions that are critical to have the right Realtor representing you. Do not make the mistake of picking an agent that does not understand how to get to the closing table on a short sale.

If you are outside the Wilmington NC  area and need to do a Short Sale please feel free to contact me and I would be happy to refer you to a Realtor in your location that handles short sales and knows what they are doing! I have referred short sales to other Realtors all around the country.

Nilesh Jethwa (CDPE)

910-622-0319

WILMINGTON NC SHORT SALE EXPERT

www.shortsalewilmingtonnc.com



Bookmark & Share

BUYING A HOME AFTER SHORT SALE IN WILMINGTON NC

Header

As a Realtor who has been heavily involved closing WILMINGTON NC SHORT SALES over the last two years, one of the questions that I get asked quite often from home sellers is how long will it take before I will be able to buy a home again.

The answer to this question does not have any clear cut and dry answer. There are quite a few variables involved when trying to figure out when someone will be able to purchase a home after a foreclosure or short sale

Going through either a short sale or a foreclosure has the potential to seriously impact ones credit. Government entities Fannie Mae, Freddie Mac and FHA do not directly loan money to individuals but are the governing body that work with lenders to guarantee loans and free up money to provide mortgages.

Banks typically have the authority to lend to whoever they want but will generally follow the guidelines set forth by these entities. There are some lenders of course that will take greater risks with some borrowers than others.

Below are the general guidelines that FHA, Fannie Mae and Freddie Mac follow when considering a loan after a short sale or foreclosure:

Short sale with FHA Loan

  • Can purchase right away with no mortgage default
  • 3 year wait if in default at the closing
  • Reduced wait if the borrower has re-established good      credit and can show extenuating circumstances

Short Sale With Fannie Mae Loan

  • 2 year wait if the borrower puts 20 % down
  • 4 year wait if the borrower puts between 10% to 20% down
  • 7 year wait if the borrower puts less than 10% down
  • 2 year wait if the borrower can show extenuating      circumstances and puts more than 10% down

Short Sale with Freddie Mac Loan

  • 4 year wait before being able to get a loan
  • 2 year wait if the borrower can show extenuating      circumstances

Foreclosure with an FHA Loan

  • 3 year wait before being able to get a loan
  • Reduced wait if the borrower can show extenuating      circumstances and re-establishes good credit

Foreclosure with a Fannie Mae Loan

  • 7 year wait from the completed foreclosure sale date
  • 3 year wait if the borrower can show extenuating      circumstances. Additional underwriting requirements apply for 4 years      after a 3 year waiting period.
  • 7 year wait for a 2nd home, cash out re-financing, or      an investment property

Foreclosure with a Freddie Mac Loan

  • 5 year wait from the completed foreclosure sale date
  • 3 year wait if the borrower can show extenuating      circumstances

** As a side note a deed in lieu of foreclosure follows the same guidelines as FHA’s foreclosure policy, the same as Fannie Mae and Freddie Macs short sale policy.

When analyzing the difference between completing a short sale or going through a foreclosure in regards to purchasing another property in the future it boils down to the waiting time which is more favorable in a short sale.

*** The above information for waiting periods before buying a home after completing a short sale and foreclosure was sourced by the Fannie Mae and Freddie Mac selling guides along with the FHA handbook.

If you are need to short sale your home or condo in Wilmington, Hampstead, Leland, Rocky Point, Wrightsville Beach, or Carolina Beach get in touch! I would love to interview for the chance to represent your best interests.

I am successfully completing short sales throughout the Wilmington NC and Surronding areas. So far, knock on wood, I have a 98% success rate for short sale approval! Short sales are specialized transactions that are critical to have the right Realtor representing you. Do not make the mistake of picking an agent that does not understand how to get to the closing table on a short sale. www.shortsalewilmingtonnc.com

If you are outside the Wilmington NC  area and need to do a Short Sale please feel free to contact me and I would be happy to refer you to a Realtor in your location that handles short sales and knows what they are doing! I have referred short sales to other Realtors all around the country.

Nilesh Jethwa (CDPE)

910-622-0319

WILMINGTON NC SHORT SALE EXPERT

www.shortsalewilmingtonnc.com



Bookmark & Share

Wilmington NC Short Sales – Important Information Homeowners Should Acknowledge PART TWO

Wilmington NC Short Sales – Important Information Homeowners Should Acknowledge PART TWO

PLEASE CLICK HERE FOR PART ONE

Common Short Sales Process Used by Most Lenders 

Although the actual process that is commonly used in short sales may vary from one lending firm to the next, it is generally pretty much the same across the board. When most homeowners compare short sales vs. foreclosure it generally is agreed that short sales is the better option. The common short sales process is as follows:

1. The first step is to consult with the lending institution holding your mortgage so you can discuss the options available to you using short sales. This is when homeowners will gain short sale information from the lender in regards to the specific process they will need to follow to complete the sale of their property.

2. This step involves homeowners sending a letter to the escrow agency and the property buyer that will list their detailed short sale information and authorizing the release of this information.

3. The settlement statement holding the short sale information will be reviewed by the lender. The statement includes information on the short sale that includes the price the property will be sold, an itemized list of expenses involved, balances on loans that remain and any other fees that may be applied to the closing of the entire process of short sales.

4. Short selling a property requires that homeowners write a ‘letter of hardship’. This should include in-depth details in regards to financial difficulties the homeowner is facing. Other items the lender will also need to see to validate the necessity for short sales would include information of investment accounts, checking and savings accounts, pay stubs from the employer and any other financial records that would indicate validity for a short sale.

5. The overall condition the property is in, as well as the prices of homes of comparison that will determine a fair market value will be obtained by the lender through information the broker supplies.

6. All aspects of the short sales agreement will then be scrutinized by the mortgage lender. This is to determine that the amounts and conditions are reasonable and to ensure the commission on the real estate is acceptable.

NILESH JETHWA
WILMINGTON NC SHORT SALE EXPERT

http://www.shortsalewilmingtonnc.com/



Bookmark & Share

Wilmington NC Short Sales – Important Information Homeowners Should Acknowledge PART ONE

Wilmington NC Short Sales – Important Information Homeowners Should Acknowledge PART ONE

There are a large number of homeowners who have been led to think that the perfect way to avoid foreclosure and walk free from a mortgage without owing a dime is simply by using a short sale. Much of this type of thinking is gaining traction simply because of a lot of confusion that has occurred when it comes to strategies used in real estate. This may be true in part; however the short sales process is not as simple as some people may think.

Short selling is an option some homeowners use when the bank, credit union or other type of mortgage lender they have borrowed from provides them with the option of selling their home to a third party (generally the lender) at a price that is much lower than what they actually still owe on the note of their mortgage. The short sales process is one that is often used by homeowners who are trying to avoid getting caught up in a foreclosure. Thus, receiving approval from the lender to short sale allows them the opportunity to sell their property at a significantly lower rate. It is also important to compare short sales and foreclosures to ensure you are making the right decision.

To most people, it sounds rather strange for any type of lender to be willing to accept a lower amount from homeowners than what they truly owe on their home. There is more than just one reason why a bank chooses to accept short sales. The key reason is, simply put, that a short sale costs them much less than what a home foreclosure would. The expense banks already have to consider from foreclosures is astronomical. They will also be able to supply you with information in regards to benefits received from short sales. However, when they provide homeowners with the option of short selling, they are then able to recover at least a partial amount of what they would otherwise completely end up losing. When a bank has several mortgages that are non-performing, the Federal Reserve will often lower the amounts or even suspend funds they provide to these lenders.

There are also two different options in regards to short sales that a credit union, bank or other lender might offer. Before attempting the short sales process, it is vital to find out which one it is that your lender offers to homeowners. These options are as follows:

1. Deficiency Judgment – In using this type of short sale option, the homeowner will be held liable to pay whatever difference there may be in short selling and the balance of their mortgage loan. It is important to note that short sales information of a deficiency judgment will stay on a homeowner’s credit report until the balance is paid. Short sales of this nature frequently take numerous years to pay off, as the balance generally equals thousands of dollars.

2. Payment in Full w/out Pursuit of Deficiency Judgment – This particular type of short sales option is the most popular choice among most homeowners. They do not have to worry about moneys that are required above the amount their property is sold. This means they are free and clear of obligations after the process is complete of short selling their property.If the process of short sales is something you must consider it is necessary to contact the bank as soon as possible to gain short sale information on the type of options that are available to you, along with information in regards to short sales vs. foreclosure

 

NILESH JETHWA
WILMINGTON NC SHORT SALE EXPERT

http://www.shortsalewilmingtonnc.com/

 

No Equity: Wilmington NC Short Sale

No Equity

Are You Upside Down on Your House Value
or Fallen Behind in Payments?

A “Short Sale” is a special transaction that allows you to sell your home even when your mortgage debt is higher than the value of your home.  Your lender takes the loss for the difference between sales price and your indebtedness, but takes an even greater loss if forced to foreclose. 

Very few Real Estate Agents have the contacts and expertise to quickly and efficiently process a Short Sale. I’ve been professionally trained on how to help with your current lenders so you can quickly sell the property and get out from under this burden. 

A Short Sale will help you:
Avoid Foreclosure
Avoid Bankruptcy
Protect Your Credit From Intensely Negative Impacts
Be Free of Financial and Emotional Burdens

There is NO charge to you for any of our short sale service. You will never be asked to pay us any money, regardless if the deal closes or not.

If you would like to set up a no obligation consultation to discuss your options to avoid foreclosure or to see if you qualify for short sale then you can reach me directly at (910) 622-0319 or submit the below form: We are here to help you!

 Nilesh Jethwa: Wilmington NC Short Sales

www.shortsalewilmingtonnc.com



Bookmark & Share

11 Things To Know About Buying A Short Sale Home In Wilmington, NC

11 Things To Know About Buying a Short Sale Home in Wilmington, NC

Now-a-days you can see that most of the listings are short sales. Those who are looking to buy, can get a good houses and sometimes below market price.

Here are 11 things about buying a short sale home in Wilmington NC, which might help you to buy short sale listings in this market:

1. Educate Yourself About Short Sale:

You need to know more about short sale and difference between short sale and other sales (regular sale & reo sale). Whether it’s the right buy for you or not. If you want to buy as soon as possible and cannot wait couple of months then short sale is not the right choice to write an offer. But if you can wait couple of month then look for short sale homes also in your search criteria and ask your agent to show short sale listings also.

2. Get Pre-Approval:

This is important whether you are writing offer to short sale or other type of listings. Pre-approval will make your offer stronger and gets higher priority than others who are submitting without pre-approval. So, make sure you are pre approved with a good lender before your home search.

3. Time Frame:

It takes time to know the final approval from the seller’s lender after you submit your offer, may be 1 month, 3 months or more. You need to have patience to wait that long for your dream home.

4. Offer Acceptance:

Even though, seller accepts your offer, doesn’t mean that your offer has accepted and you can move forward with that offer. Once you submit the offer, the seller’s agent forwards to the seller’s lender for final approval. The lender may accept it, reject or counter back to you with their price based on their own appraisal price.

5. Other Liens:

If other liens like HOA, tax liens and others where the seller owes to those lien holders , could also be a hindrance to the final approval of the sale. Most of the time, bank approves to pay all the liens but sometime they don’t, in that case either the seller or buyer or both needs to contribute to get that good deal.

6. Writing Offer:

Write a good offer based on the market value, don’t think that it’s a short sale, you can write a ridiculously low offer and bank will accept it. No, once you submit the offer, bank will also do their part by ordering appraisal to check the market value. They compare the appraisal value with your offer price. If you really like the house then write your best offer so that you can have higher chance of getting that house. Now, write only for those houses which you really like and not all short sale listings.

7. Check Listing Agent:

Check whether the agent representing the seller has experience in short sale or trained /certified agent in short sale, this shows that the agent can handle the short sale correctly from the beginning itself from submitting the package to getting approval from the lender. If the buyer side agent is also experienced is short sale then that would be a plus point to the buyer.

8. Follow up:

You need patience, once you submit your offer, don’t call your agent every other day for the status. The lender takes time depends on their work load to order appraisal or BPO (Broker Price Opinion) to determine the market value. This process itself sometime takes 30 days and another 30 or more days for final approval. But make sure, you ask your agent to follow up with the listing agent every other week or so for the latest update if any.

9. Backup Offers:

If you really like the house and somebody already wrote an offer, then ask your agent to submit a backup offer, if they are accepting the backup offers because sometimes the first buyer may walk away from the deal due to long waiting period or due to some other personal reasons.

10. Terms & Condition:

All the short sale listings are “As-is” sale, but that doesn’t mean you have to buy a house without any inspections. You have the right to do all the inspections but the seller will not fix anything if there’s any repair. It depends on you whether you are satisfied with the inspection reports and repairs(if any).

11. After Approval:

After getting the approval letter from the lender then work on to remove your contingencies(inspections, loan approval) and submit your initial deposit to the title within the specified time so that you can close the escrow on time and move to your home.

Buyers, you can get a deal with a short sale, but it comes at a price. If you have the time and the patience you could be rewarded handsomely.

Posted By Nilesh Jethwa CDPE Wilmington NC



Bookmark & Share

Wilmington NC Short Sale//Who Pays My HOA In Short Sale?

Who Pays My HOA In Short Sale?

Nilesh Jethwa  Wilmington NC Short Sale Expert

Most of the homeowner who has Home Owner Association (HOA) has this question when they cannot afford their monthly mortgage payment that “who pays my HOA in short sale?”

When the homeowner is in financial difficulties, sometimes they cannot afford to pay the home owner association fees along with other payments. Even though, it’s much lower payment than the mortgage payment but believe me they have the right to foreclose if you miss the HOA dues for couple of months or more, depends on the association rules and regulations. 

But in this tough market, most of the association doesn’t want to foreclose but most probably they will send it to collection department to collect it from the home owners for the due amounts.  They add their additional fees also with that balance due amount when it goes to collection.  Now, if you are not paying the association fees, they will put a lien on your property, which will make it hard to sell the property without clearing their dues.   

If you are doing short sale then sometime the lender pays all of your HOA dues but not all the banks pays for it.  You need a trained and experienced short sale agent on your side to negotiate with the lender to pay the HOA dues or make some kind of arrangement with HOA so that you can complete the short sale process. 

Trust me, HOA people is hard to deal with, they don’t want to give up any of their due amounts and most of them, don’t even care whether the homeowner is facing foreclosure or not.  If the lender doesn’t pay the HOA balance dues and no one else pays then you cannot complete the short sale even if the lender approves the short sale.  So, it is really important that you always work with an experienced short sale agent in your area, who knows how to handle the short sale process.

If you have any questions or need my assistance in selling your house then please contact me at 910-622-0319 or email me.  I sell not only in Wilmington NC but also the Pender and Brunswick County area. So call your local area short sale specialist for your short sale.

www.shortsalewilmingtonnc.com



Bookmark & Share

WILMINGTON NC HAFA SHORT SALES

The HAFA program is the government’s new short sale program. The government created the program in an effort to assist homeowners who can no longer afford their home and who want to avoid the damage a foreclosure does to a borrower’s credit. The following is my understanding of the program guidelines as presented in the MAKING AFFORDABLE Supplemental directive 09-09.The federal government has asked lenders to voluntarily implement a new program called Housing Affordable Foreclosure Alternative (HAFA.) The start date is April 1, 2010 although it is expected that some lenders will implement the program sooner and as I stated earlier, lender participation is voluntary. The guidelines further state that a lender who participated in the HAMP (Homeowner Affordable Modification Program) will be required to participate in HAFA. Loans in which Fannie or Freddie has an interest in do not qualify. They are working on their own short sale program. In order to qualify for HAFA, a homeowner must meet the basic eligibility requirements for HAMP. They are: • The property is the borrower’s primary residence. • The mortgage loan is the first lien originated before 01/01/09. • The mortgage is delinquent or default is reasonably foreseeable. • The current mortgage balance is $729,750.00 or less. • The borrower’s monthly mortgage payment exceeds 31% of the borrower’s gross income. • If the borrower has mortgage insurance, the insurer must waive any right to collection from theborrower. If a borrower meets the following criteria, the participating servicer must give the borrower the option to enter into the HAFA program: • The borrower did not qualify for the HAMP trial period. • The borrower did not successfully complete the HAMP trial period. • The borrower is delinquent on their HAMP modification. • The borrower requests a short sale or deed-in-lieu. The good news for sellers who participate in HAFA: • The lender is required to forgive any deficiency (no more waiting and wondering if they going pursue the deficiency.) • The sellers will get $1500.00 at close of escrow. • Servicers are expected to provide an approval letter 10 days from the date the offer is received (no more waiting for months with no guarantee that the short sale will be approved.) • The short sale will be pre-approved and the server will provide the listing agent with a pre-approved listing price. • The server will pay up to 3%, but no more than $3000.00, to junior lien holders. • If a borrower meets the HAMP qualification requirements listed above, they can participate in HAFA without going through the HAMP program first; as long as their servicer is participating in the program. However, if the borrower hasn’t gone through HAMP first, it will be very difficult for a servicer to get an approval letter to the borrower ten days from the offer submission date, and it will more than likely create delays. During the HAMP program process the borrower’s hardship is evaluated. The servicer becomes very familiar with the homeowner’s situation and all the obstacles that cause short sales to take forever are dealt with. Short sale pre-approval is pretty much determined through the HAMP process, so going through the HAMP program first will help the short sale to move quickly through HAFA. The good news for buyers: • The endless waiting for short sale approval will be eliminated. Short sale approval in 10 days or less. • Lenders must allow at least 45 days for close of escrow. This program will take all those frustrating unknowns out of the short sale process. The HAFA summary states that it is the borrower’s responsibility (with the assistance of their Realtor) to “deliver clear marketable title to the purchaser or investor.” It further says that the servicer can assist the borrower and the listing agent in the negotiations with lien holders, but they are not required to do so. An experienced Short sale agent knows how to negotiate with junior lien holders; however juniors could create problems based on HAFA guidelines. The program provides $3000.00 for junior lien holders. It also requires that junior lien give up the right to pursue any deficiency. If a junior wants more than $3000.00 and/or is not willing to forgive the deficiency, the borrower will not be able to obtain clear title as required. Multiple junior liens could create a problem. If there is more than 1 junior lien holder, $3000.00 may not be enough to satisfy them all. Another potential issue is that senior liens are not mentioned in the program guidelines. Property taxes are considered a senior lien and currently lenders will pay past due property taxes in order to attain clear title. Since the HAFA program stipulates that providing clear title is the borrower’s responsibility, one could assume that the borrower will have to pay any past due property taxes, before close of escrow, so clear title can be provided. definitely One other important requirement: • The transaction must be completely arms length. No one involved in the transaction can be related. This includes the Realtors, the buyers and the sellers. Currently in a short sale transaction the lender does not automatically give up the right to pursue. Large numbers of short sales fail because borrowers are concerned that the lender may pursue the deficiency. The fact that the HAFA program requires that the lender forgives any deficiency is a huge relief for borrowers struggling with their mortgage. Other than the problems that may arise with other lien holders, this program is a major step in the right direction for borrowers who are “under water.” It gives them a real chance at a fresh start. There are so many borrowers out there that are responsible people who find themselves in a night mare they never imagined, this program is an opportunity to move beyond the night mare and begin again. It is also a win for everyone who lives in the neighborhood of the borrower who participates in HAMP. Short sales generally do not bring down the value of the neighborhood as much as an REO does. Overall we see this as a positive solution for a homeowner in a very difficult situation. This is one of most important step in short sale, hire an experienced agent, if that agent is Certified and trained in short sale then that would be a plus. An experienced short sale agent knows how to negotiate with lender, how to prepare the short sale package and how to market your property to get buyer for your house. Before hiring, check that agent’s web presence, ask for reference and check whether they have successfully closed any short sale transactions. If you are in Wilmington , NC or near by area and need my service for short sale, don’t hesitate to contact me at 910-622-0319, your expert short sale agent in Wilmington area. www.shortsalewilmingtonnc.com.

Posted by Nilesh Jethwa



Bookmark & Share

WILMINGTON NC SHORT SALE, I am Paying My Mortgage Payment From My Savings And Credit Cards

I am Paying My Mortgage Payment From My Savings And Credit Cards

 

I have seen some home owners paying their mortgage payment from their saving accounts and credit cards in order to pay their monthly payment because they don’t have enough money to pay their payment and don’t want to be behind in payment. 

Home owners are trying their best to save their house and doing everything possible they can to pay their mortgage.  You have to ask yourself these questions “how long am I’m planning to pay like this?” And “Is this just for current month or for more than couple of months?

If it’s just for a month because of some unseen financial issues then it may be ok but you should be really careful by using credit cards to pay for monthly mortgage payment because next month, you have to cover additional payments for this charges on your credit card plus your monthly payment.

If you are using credit cards and also getting money from savings to pay your mortgage for more than a month then it’s a sign of financial hardship and you have to take some early action to resolve this problem by either modifying your loan or short sale (sell your house) otherwise you will get into deeper debt before you know it. 

If you think, your financial hardship is temporary and will be ok in a short period of time then contact your lender directly for loan modification and ask for their loan modification package.  You can do this loan modification for free by contacting the lender directly.  But, if you know that you cannot refinance because the property value is upside down and the lender denied your loan modification because you don’t have enough income then contact a short sale expert in your local area to do short sale. 

I know, you are trying your best to save your house by paying your mortgage on time, but my sincere advice is that, don’t maximize your credit cards and empty your savings in order to pay your monthly payments, in this way, you will end up in more debt which will create more problem and tension in the future. 

Once you know that you will be in trouble in paying your mortgage, contact your lender immediately for loan modification and if the loan modification is not possible then try to do short sale to avoid foreclosure from your credit.

If you are in Wilmington NC area and need my free consultation on how to do loan modification or if you need my free service for short sale then feel free to contact me at 910-622-0319 or email me, I would be happy to assist you.

Nilesh Jethwa

WILMINGTON NC SHORT SALE EXPERT