To avoid losing homes to foreclosure due to long response times for short sale transactions, three senators introduced legislation to speed up the short sale process.

Senators Lisa Murkowski (R-Alaska), Scott Brown (R-Massachusetts), and Sherrod Brown (D-Ohio) proposed the bill addressing the issue of short sales timelines on February 17. A short sale is a real estate transaction where the homeowner sells the property for less than the unpaid balance with the lender’s approval.

“There are neighborhoods across the country full of empty homes and underwater owners that have legitimate offers, but unresponsive banks,” said Murkowski. “What we have here is a failure to communicate. Why don’t we make it easier for Americans trying to participate in the housing market, regardless of whether the answer is ‘yes,’ ‘no’ or ‘maybe?’”

The legislation, also known as the Prompt Notification of Short Sale Act, will require a written response from a lender no later than 75 days after receipt of the written request from the buyer.

The lender’s response to the buyer must specify acceptance, rejection, a counter offer, need for extension, and an estimation for when a decision will be reached. The servicer

will be limited to one extension of no more than 21 days.

The bill will also allow the buyer to be awarded $1000, plus “reasonable” attorney fees if the Act is violated.

According to a release from Short Sale New England, short sale homes do not bring down neighboring home values like foreclosed homes do, and 83 percent of short sale buyers are satisfied with their purchase, according to a 2012 Home Ownership Satisfaction Survey conducted by HomeGain.

“The current short sale process can be time consuming and inefficient, and many would-be buyers end up walking away from a sale that could have saved a homeowner from foreclosure,” said Moe Veissi, president of the National Association of Realtors. “As the leading advocate for homeownership, realtors are supportive of any effort to improve the process for approving short sales.”

Equi-Trax released a survey last year on the issues real estate agents face when completing short sales. Guy Taylor, CEO at Equi-Trax, said 71.9 percent of respondents reported that a short sale can take four to nine months to complete, and they think that is simply too long.”

The survey also found that 18.2 percent of deals require less than three months to complete, with 10 percent requiring more than 10 months.

When agents in the survey were asked to how the short sale process can be improved, 57.6 percent said lenders should take less time to close transactions, 14 percent said borrowers should be better educated about short sales, and 40.4 percent said both of these changes are necessary to improve the process.

In April 2011, a similar bill was introduced by Reps. Tom Rooney (R-Florida) and Robert Andrews (D-New Jersey), but this version requested a response deadline of 45 days instead of 75 from lenders. The legislation never came up for debate before a House committee.

By: Esther Cho – Dsnews

Bay Area Homeowners: If you have any questions on short sale, how to stop foreclosure or need assistance in short sale then contact Blaison Samuel at 510-366-9405, he would be glad to help you.

Now, major lenders are getting the importance of short sales and working with homeowners to avoid foreclosures.  I’m glad to hear that now major lenders are offering higher incentives for homeowners who are doing short sales.  They are just testing in few states and all homeowners are not qualified to get this higher amount, the lenders have their own formulas based on different factors.

Here’s the detail information on this short sale higher incentive program:

The nation’s leading mortgage lenders are extending extras for short sale transactions employed as an alternative to foreclosure – both in the form of monetary incentives for borrowers and streamlined procedures for real estate agents.

Wells Fargo says it has been making “enhanced financial relocation assistance offers” that can be as much as $10,000 or $20,000 to certain borrowers who choose to go through with a short sale or transfer the title back to Wells via a deed-in-lieu.

This extra incentive is being offered to distressed borrowers in Florida and other states where the foreclosure process is lengthening, a spokesperson for Wells Fargo explained. The exact amount of the relocation funds provided to individual borrowers varies based on a number of factors, the company says.

Wells Fargo noted that this type of additional relocation assistance is only available on first-lien loans that the company itself owns – which represent only about 20 percent of the loans Wells Fargo services. The company must follow investor guidelines for the remaining loans it services.

JPMorgan Chase is also offering a range of incentives to borrowers that agree to a pre-foreclosure sale “because if we can’t work out a modification, a short sale is a better result for the borrower, the servicer, the investor, and the neighborhood than a foreclosure,” the company said in a statement.

Chase says the amount of the offer “depends on a number of factors” but declined to share specific details on how much money it’s been providing to short sellers.

One agent in Florida confirms that he has indeed received a letter from Chase offering $20,000 to a borrower he’s representing in a short sale transaction.

Another agent in California says he closed a short sale with Chase where the borrower was paid $30,000 at closing for cooperating with the short sale.

“I have closed over 200 short sales and this was the most I have seen paid to a borrower,” the agent said.

Citi has confirmed that its average incentive offer is currently $12,000 for borrowers in cases where Citi owns the loan.

“Incentives are offered to customers experiencing financial hardship who need funds to proceed with the short sale,” a spokesman for the lender explained.

The amount, which is agreed upon upfront, varies according to the borrower’s individual circumstances and loan characteristics, Citi said. It is disbursed to the homeowner when the short sale is completed.

Bank of America says it is “committed to improving the short sale process” and has made procedural changes to cut some of the red tape for agents working with the bank on pre-foreclosure sales.

The lender now allows real estate agents to submit a backup offer on a transaction if the original buyer has walked away from the sale.

This means that agents no longer have to initiate a new short sale if the buyer changes, Bank of America explained. Instead, agents can move ahead with the original transaction in the Equator system, BofA’s short sale technology platform of choice, and continue to work with the same short sale specialist.

Bank of America says this policy change will save its agents time by not having to repeat a number of process steps.

By Carrie Bay: Dsnews

Bay area homeowners, let me know if you have any questions on short sale or would like to know your options to avoid foreclosure and possibly keep your house! Call me at 510-366-9405 or email me now for a 15-20 minutes free consultation with me.

Bay area homeowners – if you are thinking of about short sale then don’t delay the decision because mortgage forgiveness debt relief act is expiring on December 31, 2012, so it’s just one more year where homeowners are not responsible for taxes on the forgiven mortgage debt, which means if homeowners short sale their house by next year (December 2012) at less than what the owe to the bank, they can walk away free and clear and owe nothing to the bank or pay taxes on the shortage amount.

At this time, we don’t know whether the Congress will extend this for more years.  If it doesn’t extend then homeowners will be responsible to pay taxes on the forgiven mortgage amount. For example, if your mortgage balance is $800,000 but the house sells for $600,000 at the current market value then there’s a shortage of $200,000 to your bank. If you short sale by 2012 then there’s no taxes to pay but if sell after 2012 then the shortage of $200,000 will consider as your income because it’s a loss to your bank, in this situation you pay taxes on that $200,000 which will be a huge amount which will affect more to your financial situation.

According to the Mortgage Forgiveness Debt Relief Act, if a homeowner borrows money up to $2 million dollars to buy a house and does short sale due to hardship then the lender forgives the remaining balance and the homeowner is not responsible for paying taxes on the forgiven amount.  This act applies to primary residences and not for investment properties.  If you would like to know more about Mortgage Forgiveness Debt Relief Act and Debt Cancellation of 2007 then click here to view official website.

I hope it extends for another couple of years so that homeowners can avoid foreclosure and heavy taxes if they decide to do short sale after 2012, but if you think that you cannot afford any payments then consult with a professional to see if the short sale is the right choice or not.

We have helped many homeowners successfully sell (short sale) their house in bay area and avoided foreclosure.  So, if you are having difficulty in paying mortgage and wants to know your options to avoid foreclosure or have any questions on short sale then call me directly at 510-366-9405 for a free consultation to see what all options are available to avoid foreclosure.

The four big banks – Bank of America, Chase, Citigroup and Wells Fargo has agreed to participate in HARP program.  It is the new program for homeowners to refinance who are underwater. This might be good news for our bay area homeowners also to keep their house with this new refinance program.

Here’s the detail information from DSnews by Carrie Bay about this new refinance program (HARP).

The industry’s four largest mortgage servicers all say they will be taking part in the revamped Home Affordable Refinance Program (HARP).

Bank of America, Chase, Citigroup and Wells Fargo have each expressed their support of the program and the changes that will allow more underwater homeowners to refinance at today’s lower interest rates.

Government officials expect the program’s revisions – particularly the GSEs’ waiver on representations and warranties – to increase competition for mortgage refinancing.

An executive with JPMorgan Chase told the company’s investors this week that HARP 2.0 will facilitate “cross-servicing refinancing” because with the rep and warranty waiver, the new lender is not required to assume responsibility for underwriting deficiencies that may have occurred with the original loan.

Chase explains that HARP may be used to replace an adjustable-rate or interest-only loan with a standard fixed interest rate loan, and typically reduces the borrower’s monthly payment.

Frank Bisignano, CEO of mortgage banking at Chase, estimates that with the new HARP guidelines, thousands of Chase customers could lower their mortgage payments by an average of $2,500 a year.

Citi said in an emailed statement that it “supports the program and expects to participate.”

Wells Fargo, likewise, said in a statement that it “welcomes the addition of the new HARP features.”

Veronica Clemons, a spokesperson for Wells Fargo Home Mortgage, says the company is waiting for specific guidelines and requirements from Fannie Mae and Freddie Mac in order to put the changes into practice.

She adds that once the company’s mortgage servicing team has the guidelines in hand, “it will take us some time – depending on the complexity of the guidelines – to make the necessary systems changes to begin offering the new enhancements to our customers.”

The GSEs’ regulator, the Federal Housing Finance Agency (FHFA), says Fannie and Freddie plan to issue guidance with operational details about the HARP changes by November 15th.

“Since industry participation in HARP is not mandatory, implementation schedules will vary as individual lenders, mortgage insurers, and other market participants modify their processes,” FHFA said.

Bank of America says it will participate in the enhanced Home Affordable Refinance Program announced by the administration, and it expects the new guidelines and eligibility criteria to go into effect after December 1st.

“Despite ongoing economic challenges, nearly 90 percent of our customers remain current on their mortgage,” BofA spokesperson Rick Simon said. “HARP helps these homeowners who remain current on their mortgage with options to lower their monthly payment when, otherwise, conventional funding options are limited.”

The GSEs have removed the 125 percent loan-to-value (LTV) cap under the program. Now any borrower with an LTV ratio above 80 percent is eligible for a HARP refinance, as long as the loan was sold to Fannie or Freddie prior to May 31, 2009, and the borrower is not delinquent on their payments.

Since HARP was launched in 2009, nearly 900,000 loans have been refinanced through the program. Government officials estimate that an additional 1 million homeowners will receive assistance under the new guidelines.

In its announcement of the program changes, FHFA encouraged borrowers to “contact their existing lender or any other mortgage lender offering HARP refinances.”

This is really exciting news for bay area homeowners who are doing short sale, to know that they don’t have to worry about banks coming after for any remaining balance after they do short sale.

The law applies to both primary and investment properties of 1-4-units.

California Governor Jerry Brown signed SB 458 (Corbett) into law which ensure that any lenders that agrees to a short sale must accept the agreed upon short sale payment as payment in full of the outstanding balance of all loans.  SB 458 provides no protection for investors who own property in a corporation, LLC, or limited partnership.

The law which passed last year 580E was to protect homeowners only from 1^st lender for not to follow homeowners after short sale but it didn’t protect from 2^nd or junior lien holders.

This new law SB 458 will protect homeowners from all the lenders whether it’s 1^st lien holder or any other junior lien holders. “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 to subsidize the difference,” said C.A.R. President Beth L. Peerce.

I’m so happy to hear this news that now California homeowners need not worry about any lenders coming after for remaining balance after they short sale their house whether it is your primary home or investment home and whether it is purchase money or refinance loan.

If you are in Fremont, Newark, Union City, Santa Clara, San Mateo, San Jose or anywhere in bay area and would like more information or need any short sale assistance, please feel free to call me at 510-366-9405, I would be glad to assist you.

If you are living in bay area or in California, you still have lot of options to keep your home and avoid foreclosure if you are facing any hardship or imminent default.

Below mentioned programs are for those homeowners who resides in their home and not vacated their principal home. In order to be eligible for any of these programs, you need to meet their income guidelines.

Unemployment Mortgage Assistance Program: The Unemployment Mortgage Assistance Program(UMA) is for those homeowners who lost their job.  This program will provide funds up to $3,000 or 100% of your mortgage, whichever is less up to 6 months.

Mortgage Reinstatement Assistance Program: This program will help those homeowners who are behind on their payments due to a temporary change in their household circumstances. The homeowners can receive up to $15,000 under this program.

Principal Reduction Program: This program is for those homeowners who are facing hardship and their home value with negative equity.

Transition Assistance Program: This program is for those homeowners who cannot afford their home.  The homeowner needs to do short sale or deed-in-lieu in order to participate in this program and they can get up to $5,000 as relocation assistance.

The income limit for the above programs:

Alameda County — $110,750
Contra Costa County — $110,750
San Francisco County — $121,900
San Mateo County — $121,900
Santa Clara County — $124,300

If you would like to know more details on these program, click here.

All lenders are not participating in these programs, so click here to find out if your lender is participating in these programs.

I hope above information is useful for the bay area homeowners and other parts of California homeowners to keep their home and avoid foreclosure.

I’m so glad to inform my readers that we are saving more families to avoid foreclosure.  One of the families from Union City had contacted me because they were having difficulty in paying their mortgage and all their expenses; they took out all their savings and tried their best to save from foreclosure. They had also received loan modification last year from the bank but didn’t work for long term.  Their first loan was with Bank of America and 2^nd loan was GMAC.

After 3-4 months of negotiation, we got the approval from both lenders and they had also approved for HAFA Short sale where sellers received 3,000 from the lender at close of escrow.  We had successfully closed the short sale with the first buyer itself.

Second family was from San Jose and they had contacted from one of my past client.  Their loan was with CitiMortgage and Chase.  The negotiation with CitiMortgage was a good experience, they were very cooperative and the negotiator was really nice enough to generate 3 extensions (yes! we lost the first buyer and worked with 2^nd buyer) without any problem but the Chase was little bit hard in giving extensions.

Finally we had received both extensions for the second homeowners in San Jose and closed successfully. The seller was happy with the result and had moved out of state to start their new life with no worries of calls from lenders on their mortgage.

If you are thinking of short sale and having hardship then don’t delay, talk to professionals like accountant, attorney and realtors who is experienced in short sale to see if you qualify for short sale so that you can avoid foreclosure.  Give me a call at 510-366-9405 with any questions and I would be happy to assist you.

The good news is that, you don’t pay any commission to the realtors if you are doing short sale and most of the closing cost also paid by the lender. I love to work with families and helping them to avoid foreclosure so that they can live stress free!

I’m so glad to inform you that we have closed 2 more short sales successfully in Hayward Hills and San Francisco. The lender on 1^st house was Chase and it was FHA loan, it is little bit different process than conventional loans. The lenders on San Francisco house were Wachovia and Wells Fargo.

Since it was FHA loan on the Hayward Hills house, it was different experience with our file.  The lender had initially sent it to the investor(Fannie Mae) for their approval. It was little bit frustrating in the beginning because their timeline for an update from their investor was 30 days and every time I called the customer representative, the mentioned that it was still under processing and no further updates.

I called the lender again on 31^st day and they still didn’t have any update, so I escalated the file and customer representative was really nice and helped me to escalate the file. The very same week, the phase 2 negotiator called me and sent few more documents to complete which were required for this file.  After that, it was a smooth transaction and we had received the approval in couple of weeks after that and successfully closed with the same buyer. There were some issues with the buyer loan and the buyer agent but finally everything got resolved with couple of extensions to close the escrow.

San Francisco house was also little bit challenging to close, we got the approval in 35 days but lost buyers twice and we had closed the escrow with the 3^rd buyers. This buyer and the buyer agent were really good in this transaction; we didn’t have any problems this time and closed the escrow successfully.

In short sale, sometime it is really challenging to maintain all parties, getting approvals and getting extensions if there’s any delay in closing and coordinate with all the lenders. Short sale is complex and if you don’t know what you are doing then it will be really tough to handle the negotiation and close the short sale successfully.

If you are in bay area and looking for an experienced short sale realtor then give me a call for a free consultation to see if you qualify for short sale and what options you have to avoid foreclosure.  You can reach me directly at 510-366-9405.

If you have received a trustee sale notice because of non-payment of your monthly mortgage then there are few ways to stop a trustee sale on your house so that it will give you some time to work out your options to avoid from foreclosure.

These below steps will not stop the trustee sale forever if you are not taking actions quickly and honestly working towards to avoid the trustee sale. The lenders normally give 30 days or so to work with you to avoid the foreclosure and may postpone again if you show them that you are seriously working on to avoid the foreclosure.

Loan Modification is one option to stop a trustee sale, but you should already working with lender on this option or at least call the lender well before the actual date.  They may postpone automatically if you have already submitted your paper works, but it is always good to call the lender directly to request to cancel the trustee sale.  I know one family whose loan modification denied just 2 days before trustee sale, she was even working with loan mod professionals. She called me and explained the situation, I went to their home and after hearing their side of story, I had asked her to call the lender and also explained what to tell, long story short, they agreed to work with her again on loan modification and postponed the trustee sale. They are still working on loan modification and the lender postponed the sale date twice, hope they will get their loan modified. I would suggest working with the lender ahead of time on loan modification, even before you get notice of default (NOD) because not all lenders will work with you on postponing the sale date when it is closer to trustee sale date.

Second option might be to filing a Motion to Dismiss; this may buy some additional time until the judge ruled upon the motion.  I’m not an attorney to give legal advice, so check with your attorney whether this option will help you to delay the foreclosure. Again, if you don’t have any plan to save your home from foreclosure then this option may not help you to hold off the sale date.

Third option might be Bankruptcy to stop the trustee sale.  You have to work with a good bankruptcy attorney to file Chapter 7 or Chapter 13, depending on your situation. A good bankruptcy attorney can tell you which is good for you or whether bankruptcy is an option for you or not because not everyone qualifies for bankruptcy.  Let me know if you would like a referral for a good bankruptcy attorney for a free initial legal consultation.

Another option might be Short Sale to postpone the trustee sale.  I have worked with couple of clients who had contacted me after receiving the trustee sale for short sale.  I’m very successful in stopping the foreclosure with short sale.  You have to work with an experienced short sale agent who has experienced with the similar situation on how to work with lender and market the property because it is complex once you have received the notice of default or trustee sale notice to begin short sale and complete with the successful sale. It is not a guarantee that short sale will stop the foreclosure, so if you are thinking of short sale, then you have to work with a short sale specialist in your local area.  If you are looking for short sale agent in bay area, then give me a call, I might help you with short sale.

So, you have several options to avoid foreclosure even if you have received the trustee sale. Don’t hesitate to call me at 510-366-9405 with any questions, I would be happy to assist you and my service doesn’t cost you anything!

This new California law (SB 931) was signed by the Governor on September 30th, which takes affect from the beginning of January 2011.  According to this law, any first mortgages that accept a short sale cannot obtain a deficiency judgment against a seller, whether it is owner occupied home or non-owner occupied owners.

So, the good news is that for owner occupied owners and also investors who own 1-4 units, now they don’t have to worry whether lender will come after to collect the remaining balance.

Now, here’s the great news – This law applies to all type of first loan whether it is a purchase money loan or refinanced loan.  If a lender agrees to a short sale on first mortgage then that lender must accept the sale proceeds as their full payment and fully release the seller from any deficiency.

I have personally negotiated and closed many short sales in bay area with all the major lenders and one of my main goal in short sale is to get the deficiency judgment waived for my clients. You can read for more details on SB931.

As a Bay Area short sale specialist, I know this is really important for my clients to get a full release whether purchase money or refinanced.  So, if you are a homeowner whether occupied or non-occupied (investors) and having difficulty with your mortgage and selling the home is the only option, then call me at 510-366-9405 for a FREE consultation to know your options and how you can avoid foreclosure.