Short Sale

Chase Short Sale- Have You Received This Letter

August 2, 2011

The Chase Short Sale Outreach Program. Is this real or is this a hoax? The answer is, it’s the real deal! If you were one of the lucky San Diego short sale home sellers who have received this letter then you may as well of hit the lottery. We’re not talking millions of dollars here. You can receive up to $30,ooo though which is nothing to sneeze at. In this economy, I’m sure we can all use an extra 30K right!

According to an asset manager I spoke with while working on one of these Outreach Program sales, the Chase Short Sale Outreach Program is basically a lottery that Chase Bank’s defaulting assets get put into to try to incentivize  the home owners to opt for a short sale vs foreclosure. I have heard that the thinking behind this is that by offering a home seller an incentive, they will be more likely to keep the home is a good condition to sell, thus netting the bank a higher sales price and less of a loss to the bank. I don’t know how much of this is true but I do know that Chase is serious about this program and they want these homes off their “books”.

There has also been speculation that these homes that have been put in to the Chase Bank Outreach Program were part of portfolios acquired  from other banks that Chase bank bought out in recent years. This same asset manager at Chase Bank I was working with said this was false information. He basically said there is no rhyme or reason to who get the letters and sellers cannot request to be put into this Chase short sale incentive program.

I have now completed a few short sales through the Chase Bank Outreach Program and I have to say, these are the best short sales I have ever worked on. My last Chase Bank Outreach Program sales was just 88 days from list date to close of escrow date. Not even 3 months from start to finish on a short sale! Did the sellers get the 20K promised to them by Chase Bank you ask? Every last penny! 

If you have received one of these Chase letters do not throw it away. This is your golden ticket! Give me a call today at 760-470-2752 to short sale your San Diego home and in as little as 3 months you can be up to $30,000 richer!

: Carlsbad Real Estate, Home Selling Tips, Real Estate News, San Diego Real Estate, Short Sale
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New CA Law Increases Importance of HAFA in Short Sale Market

August 2, 2011

New CA SB458 law may increase the importance of the HAFA Short Sale Market in California.

HAFA (Home Affordable Foreclosure Alternative) is a national short sale program adopted by major lenders and servicers that requires subordinate liens to fully forgive borrowers of their debt along with other requirements. Full debt forgiveness is now also required under SB458 for lenders of one-to-four residential unit properties doing short sales in California (unless an exception applies).

“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 subsidize the difference,” said C.A.R. President Beth L. Peerce.

Just as in the HAFA guidelines, 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 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. HAFA is also the only short sale that helps the homeowner with moving assistance funds and insures agent commissions.

Information provided by C.A.R

: Carlsbad Real Estate, Home Selling Tips, San Diego Real Estate, Short Sale
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How to Spot Mortgage Repair Fraud

April 9, 2011

As the San Diego real estate market struggles to recover from our current economic challenges, many homeowners are still desperate for quick fixes, which makes them very vulnerable to mortgage repair fraud.

Generally, these scams take advantage of media coverage of federal programs, and they target those who are already struggling to pay their mortgage or are anxious to sell their San Diego homes. Being able to recognize the most common types of mortgage repair fraud can help you avoid becoming a victim.

1) Automatic Refunds – A company charges several thousand dollars for loan modification services. They do no work on the file but automatically send a refund check to consumer for a couple hundred dollars. They pocket the remaining money, saying they “tried” to get a loan mod but the bank rejected them. No one complains because the company “tried” and the consumer received a partial refund.

2) Double Escrows – A company tells the bank they have a San Diego short sale buyer at a low price in order to get appraisal. They don’t tell anyone that they have a second buyer lined up to buy the house once the short sale goes through. They set up escrow and closing for the same day on both deals. Bank gets cheated on the original San Diego short sale since it is not legitimate, and the scammers make a profit on the second deal as well.

3) Principal Reductions – These are companies guaranteeing or advertising they can get you a principal reduction. Most lenders will not agree to a principal reduction, but scammers use this as an advertising ploy to get your money and your business.

4) Phantom Investor Purchase – This occurs when scammers falsely claim they have investors willing to purchase your house from the bank and then resell it back to you at a reduced mortgage. The investor pools usually do not exist, and the scammer is taking your money up front but not providing you any real assistance.

Remember, if it sounds too good to be true, it probably is. Don’t be pressured into signing or paying. Don’t believe anyone who tells you not to contact your lender or instructs you to pay them, instead of your lender. For legitimate, FREE help, call toll- free 877-448-4692 to get assistance from a HUD-approved, non-profit housing counselor.

: Loan Modification, Real Estate News, Short Sale
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Short Sale Program Eliminates Hurdles

February 14, 2011

The federal government’s short sale program (Home Affordable Foreclosure Alternatives, or HAFA), recently made changes to the eligibility requirements that could open up the program to more sellers.

The most sought-after benefit of a HAFA short sale is the elimination of the seller’s personal liability on any difference between the sales price of the home and the amount of the mortgage loan.

To be eligible for HAFA, the seller must still demonstrate some kind of financial hardship. However, the lender is no longer required to verify a seller’s financial information or to determine if the borrower’s total monthly mortgage payment exceeds 31 percent of the seller’s monthly gross income.

Another major change to the HAFA program concerns the vacancy of property. Originally, the home had to be currently owner-occupied with a narrow, 90-day exception related to job relocation. In the revised program, the property currently must be or recently have been the seller’s principal residence, but a vacancy for up to 12 months prior to the short sale agreement is allowable, so long as the seller provides documentation that the property was his/her principal residence prior to relocation and the seller has not purchased a residential property in the prior 12 months. The reason for relocation does not need to be connected to re-employment or transfer of employment, and there is no longer a minimum distance requirement.

: Short Sale
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HAFA Provides Help for Short Sale Properties

August 5, 2010

The Home Affordable Foreclosure Alternatives (HAFA) program became effective on April 5, 2010. This program is funded from the federal government’s $75 billion stimulus program and is designed for homeowners who are in financial trouble but don’t qualify for a mortgage modification. The objective is to speed up the short sale (properties with less value than the mortgage balance) process and prevent lenders from filing deficiency judgments against the home seller. The program could improve or at least minimize the foreclosure crisis. It may provide relief for an estimated 70 percent of San Diego homeowners who have mortgage balances larger than the value of their home. Lenders are on board with the HAFA program and are prepared for an expected onslaught of inquires.

HAFA will be offered after a lender declines a homeowner’s request to modify their existing mortgage. The lender will send out solicitation letters regarding the HAFA program shortly after the decline of a modification. Participation in the HAFA program will shorten the time to process a short sale approval once the homeowner enters into a purchase agreement with a buyer.

Click here for a list of participating lenders and loan servicers.

: Carlsbad Real Estate, Home Selling Tips, Oceanside Real Estate, San Diego Real Estate, Short Sale
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