Detroit Short Sale

It’s not a hidden fact that Detroit’s real estate market is suffering worse than many others. This results in a shockingly high foreclosure rate, but that can be changed. A short sale is a way to stop Detroit foreclosure and takes place when a lender allows a borrower to sell their home for less than they owe on the property. The lender understands they will be taking a loss, but this loss is still less in most cases than the amount they will lose if they pursue a foreclosure. Most of the time, lenders choose to release the borrower from the deficiency amount that is owed. In some rare instances lenders may require borrowers to pay back a portion or the entire amount over an extended period of time. We are seeing this happen less and less.

The first step is to hire a Detroit short sale Realtor. This real estate agent will walk you through the entire short sale process, providing FREE help along the way. Don’t trust just any agent to properly short sale your property. It takes an experienced short sale specialist to successfully complete the process in the smallest amount of time possible.

On average, the short sale process takes around six months to complete. We have seen some transactions take over a year while others close in two months. The duration depends on many different factors like the number of mortgages on the property, the listing agent’s competency, the home’s attractiveness, and the list goes on. Since each missed mortgage payment can cause a decrease in your credit score, it’s a good idea to begin the short sale process as quickly as possible.  When it comes to short sales and your financial future, there is no substitute for experience.  We have helped hundreds of area home owners avoid foreclosure with a short sale.  Contact us to speak to a local Detroit short sale specialist to offer no cost assistance.

Michigan Short Sales: Various Cash Back Incentive Programs

Homeowners having difficulties paying back the loans for their houses, as well as other debts alongside a mortgage, may be eligible for certain cash back incentives when choosing a short sale. This can range between a government-sponsored short sale program or even an incentive from commercial banks and mortgage companies. However, government short sale programs have only taken effect in recent years, meaning many home owners may already be deep in debt with commercial banks and loaning institutions. Since homeowners who have many debts might have loans spread across more than one financial establishment, banks have come up with their own way to ease off the pressure.

Here are a few commercial banks that offer cash back incentives when performing a short sale.

• Bank of America – While their reputation has been less than stellar in the last few years, Bank of America has since relegated the task of short sales to Equator.com. This new contract has made a short sale done with Bank of America something to look out for, whether or not there are cash incentives involved.
• Chase Bank – This bank is often touted for its maximum cash incentive rate of $30,000 for closing out a short sale. Also, if you have an aging loan taken out at Washington Mutual, then you may be eligible for cash incentives at Chase bank when taking out a short sale.
• Wachovia Bank – Now owned by Wells Fargo, Wachovia can offer cash incentives to borrowers who have taken out loans at either bank. While certain criteria are met, (such as meeting a deadline for a short sale) homeowners will receive cash incentives ranging in the thousands of dollars during a closeout.

Government Short Sale Incentive Programs

The HAFA program was introduced in 2009 as a way of helping homeowners who are behind on their debts and mortgages. A lot of homeowners who are denied a loan modification naturally gravitate to a short sale anyway, making it a viable option for some.

The HAFA short sale program offers the following cash back incentives to borrowers:

• $3,000 to help a borrower relocate to a different home.
• $2,000 is also given to investors who allow up to $6,000 in proceeds which are signed off to subordinate lien holders on a one-for-three matching basis. This means investors will receive $1 for every $3 spent in junior lien releases.
• $1,500 for lenders or service providers, in order to cover processing and legwork fees.

In addition to cash back incentives, the HAFA program advertises a few other advantages:

• It will grant borrowers to pre-approved short sale terms, even before their property is listed.
• Lenders are required to waive the right to a deficiency judgment before participating in the HAFA program.
• A HAFA short sale deal also has the advertised incentive of closing out within ten days of application.
• It also uses many of the same documents and processes common in a commercial short sale.

Eligibility for Cash Back Incentive Programs

While these short sale cash back incentives may seem inviting, getting them will be easier said than done. With commercial banks, the rules for eligibility may vary from bank to bank, so read all of the fine print, and ask for advice from a financial professional to make sure of the terms. Otherwise, you may end up deeper in debt than you already are.

• Some commercial banks may require a short sale to close out within a set date or time period before a borrower can receive a cash bonus. As your house is already bought out on a loss, banks will need to secure their investments somehow.
• Taking a commercial short sale may not make you eligible for a government short sale, or vice versa. For example, you cannot submit an approval for a short sale with Bank of America if you have already taken out a short sale with the HAFA process.
• Some banks may offer varying amounts of cash incentives when advertising their short sale services. Wachovia in particular may offer $1,000 to $7,500 if a seller is able to close out by the date agreed upon in a contract. Meeting other terms and conditions, like agreements with subordinate lien holders, may also net certain cash amounts.

Government-sponsored short sale programs are also subject to strict criteria in order for cash incentives to be paid off, no matter which party wants it. Here is an example of criteria taken from the HAFA short sale process:

• A homeowner’s mortgage must have originated before January 1, 2009, and must total to less than $729,750.
• Borrowers must be on some kind of financial hardship.
• Buyers must not sell the property within 90 days of purchase.
• Only primary personal residences are eligible for a short sale.

Another example from the Transition Assistance Program in California, which provides up to $5,000 in cash incentives per household:

• A homeowner must qualify as a low-to-moderate income household.
• A Hardship Affidavit must be filled out.
• Homeowners whose military service has run them into financial hardship are eligible.
• Homeowners must not have declared bankruptcy or a foreclosure.
• A homeowner’s mortgage loans must also at risk of imminent default.

Contact our Network of incredibly experienced short sale specialists now, and let’s get your short sale completed and your incentives delivered!

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

If you are a homeowner who is searching for options to stop foreclosure on your Detroit MI home, then contact our specialists! We offer FREE short sale services to you!  Our Detroit area Certified Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Michigan Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2012

How to Do A Short Sale Without Missing Payments

The short answer is yes, you can do a short sale without missing payments in many cases. Gunning for a short sale to avoid foreclosure can be risky business, but if you aren’t missing your payments while in the short sale process, your creditors might be more grateful.  You might want to keep paying your mortgage for quite a few reasons:

• Qualifying for a new home – If a borrower was never been delinquent with payments despite taking out a short sale, may be eligible to buy a home immediately after. This is according to the “excessive prior mortgage delinquency policy” included in the August 2008 Fannie Mae guidelines.
• Maintaining Credit Ratings – Since you are still paying your mortgage, your credit report will reflect it. Lenders will still leave a mark about the short sale on your permanent records, but it will not look nearly as bad as a default, bankruptcy or foreclosure will.
• Cancellation Without Penalty – If you already applied for a short sale, but have been denied for one, you will still be able to keep your home since you are still paying your mortgage. This may also be true if you have already put your home up on a short sale listing, but you were not able to find a buyer.

Sustaining your mortgage payments will also bring significant peace of mind to both you and your creditors; being delinquent with your payments will make it hard for future creditors, lenders and other financial institutions to trust you.

Missing Your Payments: Pros and Cons

When you do decide to miss your payments, your results may be a mixed bag. Not paying your remaining mortgage before a short sale has a few upsides:

• Better Attention from Banks – Most banks, being for-profit organizations, will usually prioritize homeowners who are in default.
• No Obligation for Repayment – In most cases, lenders will not try to force borrowers into paying back debts if they really are in dire financial situations. That’s not to say some banks haven’t tried, but declaring a hardship should be a tough case for most lenders to crack. In the case of a HAFA-sponsored short sale, the right to a deficiency judgment may be waived.
• More Savings – Money typically reserved for paying your mortgages can be saved up for something else, such as paying back your other debts, or a new home after a long and arduous short sale process.

However, there are appropriate consequences for missing out on mortgage payments while opting for a short sale:

• Negatively Affected Credit Report – Since you are becoming delinquent on your mortgage payments, your credit report will reflect it accordingly. A bad credit report may affect your ability to take out many kinds of financial transactions at banks, especially if you are rejected for a short sale.
• Inability      to Relocate – Unless you fit a special case of borrowers, being delinquent on your mortgage payments will hamper your ability to find a new home after a short sale. Fannie Mae guidelines state that borrowers who have not paid their dues in 60 days or more will be required to wait two years before relocating to a new home.
• Loss to Foreclosure – If a seller is rejected for a short sale, or can’t sell a house on a short sale listing while missing out on mortgage      payments, then he or she will lose the home to foreclosure. Needless to say, this will create bigger problems for a now former homeowner in more ways than one.

Weighing In Your Options: To Pay or Not To Pay

Lenders will typically not authorize homeowners for a short sale unless a buyer is found by a seller first. This rule is quickly becoming subject to change, however, as the real estate industry is experiencing slow but steady recovery. Either way, there will be no guarantee that a lender will even accept a short sale to forgive your debts, let alone required to allow you to go through such a process. Problems may become further exacerbated if you do choose to miss out on payments. For example, if you are denied a short sale while being delinquent on your payments, then you will lose your home to a foreclosure without any profits to show for it. Professionals in the field of short sales are disposed to the thought that if a lender won’t approve a short sale for a homeowner, then the homeowner will be prepared to part with the home regardless.

When weighing in your options, it is important to seek advice from every avenue possible in order to come to a decision. Real estate agents are not licensed to give legal advice to homeowners; they will have to consult lawyers for that. A short sale specialist may also be your best bet for sound advice.

On a case-to-case basis, lenders, banks or lien holders may approve a short sale based on other criteria, regardless of missed payments:

• Clients, who have not lost a job while on a hardship, or while applying for a short sale, may be reconsidered during the application process.
• Lenders or other lien holders may ask about a pursuit of deficiency judgment where legal.
• Promissory notes and other documents may also be looked at to determine if a borrower will be able to take out a short sale safely with or without missing payments.

As previously stated, it is important to speak with someone who knows all there is to know about short sales and other alternatives to foreclosure. Our agents are impeccably experienced in short sales and take pride in helping homeowners overcome their hardship. Our agents will make sure your short sale becomes a smooth transition for you and that you are able to look to your future with high hopes! Contact a Michigan short sale specialist now!

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Are you looking for ways to stop foreclosure on your Detroit MI home? Contact a Michigan Short Sale Specialist who will offer FREE short sale services! Our Detroit area Certified Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Michigan Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

Homes in Detroit see an increase

According to Realcomp, sales of homes and condos for Detroit increased 2.2% in 2011. Sales in jumped to about 1,000 to a total of 51,531 homes and condos over 2010, however Detroit saw home sales decrease 8.4% to 6,475 in 2011.

Detroit’s average median sales price also decreased by about $1,000 to $66,896, since the previous year as ticked up 0.6% to $9,568. It was a slow start for Detroit, but it managed in the last six months of 2011 to increase by 5.6% from December 2010. About half of the sales that take place in Detroit are cash transactions.

Short sales and Foreclosures are said to put a decrease in prices. Real estate agents remain optimistic that the Detroit’s housing market hitting bottom first, is likely to rebound first. The average amount of time homes and condos spent on the market was dropped by 4.5% last year to 90.4 days in 2010.

Detroit also saw a drop in foreclosure sales by about 21,587 from its 22,685 the year before. Detroit is seen to make bigger changes but not at one time, throughout this year we should start seeing fewer houses in foreclosure and more homes being bought.

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Are you trying to stop foreclosure on your Detroit MI home? Our Detroit area Certified Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Michigan Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

New state laws that just recently went into effect this year, has taken a closer look at mortgage fraud and its consequences. Michigan is taking a stand against mortgage fraud. In the state of Michigan, mortgage fraud is now considered a felony with punishment that includes up to 20 years in prison with fines as high as $5000, 000.

“Tougher penalties are needed to protect against scammers who think nothing of bilking unsuspecting homeowners and lenders out of tens of thousands of dollars,” said Michigan Gov. Rick Snyder when he signed the law in October. Mortgage fraud previously fell into the categories of false pretenses and forgery, but now the law has defined mortgage fraud, a criminal act. Concealing facts, making false statements, or recording documents that contain misstatements or misrepresentations are a few of the acts that fall into the category of residential mortgage fraud.

Frauds committed on loans less than $1000, 000 can be punishable of up to 15 years in prison and up to $500,000 in fines. An extension from six to 10 years on the statute of limitations on cases which include false pretense involving real estate property, forgery, and mortgage fraud. 

 A new act called The Michigan Notary Public act was initiated so that notary violations involving real estate property or mortgages will be considered a felony and can mean 14 years of prison. “Honest homeowners and lenders should not be held responsible for the terms of a fraudulent mortgage. This change allows the courts to set things right,” Snyder said.

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Do you need to stop foreclosure on your Detroit MI home? Our Detroit area Certified Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Michigan Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

Michigan short sale question and answers

• What is a short sale in real estate

A short sale in real estate is when a homeowner is in some kind of hardship and can no longer afford to keep their home, so they seek the approval from their lender to sell the home below its original value. More than likely a lender would agree to a short sale because of the massive expense of a foreclosure proceeding.

• How do I qualify for a Michigan short sale?

In order to qualify for a short sale you will typically need to have some kind of financial hardship that has set you back and has cause you to no longer be able to afford your home. Examples of these hardships might be: divorce or separation, Active Military, excessive medical bills, death of a family member, job loss, relocation or job transfer, etc.

• What will I need to prove my hardship?

Your lender will usually ask you to provide what is called a short sale package. In this package will be your hardship letter which will explain how you got into your hardship and what you have tried to do to get out of it. The package will also contain several financial documents validating your financial situation. These documents will usually include bank statements, W-2’s, tax returns, pay stubs, etc.

• Can I still do a short sale if I am in the process of foreclosure?

Yes, as I stated earlier, the foreclosure process is quite costly. A foreclosure process costs a lender about $58,000, and not to mention, too many foreclosures look bad to a banks investors!

• Who can help me with the Michigan short sale process?

One of the first things a homeowner should do when choosing a short sale over a foreclosure, is to get in contact with a Michigan short sale Realtor. But first, it is important to make sure you choose the right short sale specialist for your short sale. Not just any Realtor can successfully close a short sale. Our short sale experts take passion in what they do, and they work hard with their given experience and determination. Your short sale is a big step into your future, you have already been through enough, now let us take this financial burden away, and complete your short sale in the fragile manner it deserves! Contact a Detroit MI short sale Realtor now!

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Do you want to stop foreclosure on your Detroit MI home? Our Detroit area Certified Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Michigan Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

 Guidelines for HAMP not set in stone.

At the end of 2012, the Home Affordable Modification Program will expire and the Treasury Department is not making a decision to exclude ideas of guideline changes before then. HAMP program took off in March of 2009 to pay mortgage servicers for modifying loans facing foreclosure. The Treasury stopped their payment to servicers at $29.9 billion, while they initially expected to spend $75 billion through the program, along with $50 billion from the Troubled Asset Relief Program and the remaining from Fannie Mae and Freddie Mac.

Throughout October, servicers offered 1.9 million three month trials and put 8883,000 of them into permanent status. The Congressional oversight Panel estimated 800,000 permanent modifications by the time the program expires. The program was supposed to have reached 3-4 million borrowers and because this has not been met, servicers are hearing it for not living up to their potential performance, and also with the Treasury for not carrying out its guidelines more effectively. “Treasury has always closely monitored its existing programs to determine if there are ways to strengthen implementation. There are currently hundreds of thousands of homeowners who are struggling with their mortgage payments but eligible for assistance through HAMP,” the official said.

“We remain committed to helping as many homeowners as we can.” The Treasury has estimate that more than 965,000 borrowers who are 60 days into delinquency will be typically eligible for the program. More than 62 percent of the borrowers in the program quoted a loss of income as their reason for hardship. Excessive debt came in second with 11 percent of HAMP borrowers. The Treasury required servicers to gather all appropriate documents before starting a permanent modification. In 2011, the Treasury started showing scorecards on servicer performance and held back payments on particular servicers that didn’t score high enough.

Bank of America and JP Morgan Chase withheld for three quarters in 2011. “With just one year left for new mortgage modifications in HAMP, it is not too late for Treasury to make changes to the program,” SIGTARP said in the report, “and there remains much that it can do to improve.”

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

If you want to put a stop to foreclosure, then contact us! Need a Detroit Certified Distressed Property Expert in short sales to offer free short sale services? Our Detroit Michigan area Certified Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Michigan Home Affordable Foreclosure Alternatives, or Michigan HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

Can I sell my property as a short sale to a family member?

For a homeowner, when a financial crisis knocks on your door, it often results to one common scene—not being able to afford your home. In this case, short sales may be typically suggested. Short sales happen when a property owner is no longer able to handle their financial obligation to his home due to an utmost predicament. Short sale is a sale of a particular real estate on a lesser price than the property’s original value and the balance of the homeowner’s mortgage debt.

In today’s modern times, coming up with the finances has been difficult. Therefore, banks and lending institutions made and proposed a better solution to this common problem. Instead of foreclosing your house, you can short sale the property to lessen your mortgage debt and monetary load. Oftentimes, most property owners who have family members who are willing to help them out in short selling the property would commonly ask a question: Can I short sale my property to a family member? The plain answer to this common question is typically no. Let’s discuss further why this is so.

1) To short sale the property to a family member can be illegal

It is unlawful to sell the house to any family relative. It is written in the state’s law and on a document called an arms length affidavit that homeowners are prohibited to short sale their home to anyone in his blood. Although the process to short sale a single property is lengthy, property owners still have to go through with all the legal transactions to avoid and to stop mortgage fraud. Most of the time, sellers would request the bank for a loan modification to reduce monthly payments, but this act are always and would always be turned down by banks because short sales are associated with the arms-length affidavit.

2) What is arms-length affidavit?

When you apply to short sale your property, you will be asked to sign an arms-length affidavit. This is a written document provided by the banks particularly for short sale purposes to prevent sellers from selling the short sale property to a family member to curb mortgage fraud. Although it may sound and seem to be harsh and offensive, banks and the mortgage company do not want sellers to profit from a short sale.

 How does it affect the banks’ decision not to short sale the house to a family member?

In the past and even until now, mortgage fraud is still as prevalent as ever. Sellers would make side arrangements with a relative to act as a straw buyer, then after selling the house, both seller and buyer would quickly transfer the title back to the previous property owner. This means that the seller has repurchased the property and has gained almost half the price of the property. This practice greatly benefits the seller—a situation that does not adhere to the constitution of short sale in connection with the arms-length affidavit. Though it is not fair to say that banks make the rules, but it is what the law states and banks are in control of the situation.

3) What is mortgage loan fraud?

Mortgage fraud is anything that has false action and information regarding the homeowner. If you lie to the bank about the information they require, it is considered as mortgage fraud. Oftentimes, short sale flippers would hedge and puff to real estate agents and banks in order to lure these financial institutions to see if they can crook their way into pulling a scam on them. If these financial institutions find out that you were giving misstatements, misrepresentation, or omission, you will be given a demand to pay your loan in full amount or you will be sentenced to jail.

4) Banks’ rights in short sale properties

Banks do understand that you are in a great financial stress that is why they are allowing you to short sale the property and have the chance to be forgiven for your deficiency. But when the seller has gained benefits over the short sale property, it would also be unfair to these lending institutions since they have agreed to the loss (the deficiency on the short sale). The reason why banks created short sales and arms-length affidavit is to lessen your financial load since you are already having a difficulty coping with your finances. By following the prohibitions and laws stated in the banks constitution, you will be assisted and will tremendously reduce your financial dilemma. But acting in contrary to their laws, you will be penalized and therefore would pay much more money because of falsity.

5) Provisions on arms-length affidavit

As with any financial transactions, there are provisions related to arms-length affidavit that all buyers and sellers must adhere to.

• All homeowners who are selling the short sale property must not sell the house to a family member, distant relative, friend, business partner, or to anyone who has/have a relationship with the seller.
• Buyers must not sell the property in less than 90 days after purchasing it.
• Buyers must not resell the property to the seller or to anyone in relationship with him.
• Sellers must not rent or buy it back to the buyer because this does not abide by the terms and conditions given by the bank.
• Once the original owner has sold the property, there should be no transactions between the seller, buyer, and real estate agents to avoid fallacy to the lender.
• Buyers and sellers must not be benefited from the transactions. Only the agents, the bank, and the lending institutions involved in the transaction are to be benefited.

Violating these prohibitions leads to severe consequences, and again the banks will be the one to decide what penalty will be worth the illegal act. Usually violators are to be penalized with hefty fines and will be sentenced to jail. To sum everything up, you cannot short sale your property to your family member because it is illegal. Your Detroit short sale Realtor will be able to inform you of all about the do’s and don’ts of the short sale process, so make sure you have chosen the right short sale specialist!

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

If you need help with your short sale, contact us now, and let us help you get qualified for your short sale! Need a Detroit Certified Distressed Property Expert in short sales to offer free short sale services? Our Detroit area Certified Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Michigan Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

What You Need to Know About Chase Mortgage Short Sales

The statistics in the year 2010 recorded an estimated three million homes that went into foreclosure. The statement is also e similar to what statistics will show in the year 2011. With many homes going into foreclosure, the real estate industry experts has called this hard times a total housing mess. What is more devastating in this dire time is the emotional turmoil’s that come to the homeowners who have to face foreclosure. Definitely, there will be sadness, anxiety, distress and other negative emotions that will overwhelm homeowners who have to face foreclosure of their homes. The government has already introduced Home Affordable Foreclosure Alternatives to help homeowners go for a quick short sale. But this program has eligibility criteria that homeowners must meet. For those who cannot meet these criteria, they are advised to find their own short sale agent to facilitate a smooth short sale transaction.

Here is where Chase mortgage short sales come in. JP Morgan Chase knows that this time is distressing and government-sponsored housing programs, particularly those designed for short sale, cannot accommodate all those who are applying to be included in the program. JP Morgan Chase wants to help these ineligible homeowners go for a quick short sale. Here is some of the basic information you may want to know about Chase mortgage short sales.

What is a Chase Mortgage Short Sale?
Based from the number of houses going into foreclosure in the couple of years that passed, it is evident that many homeowners have tried every means to avoid foreclosure of their homes. But as a result of these options chosen by homeowners, mortgage loan bloated to a proportion that it is more than what the house is worth. The Chase mortgage short sale then is a program especially designed for those mortgage loans that is estimated to be higher compared with the actual worth of the house.

Incentive in the Program
JP Morgan Chase knows the situation of all homeowners facing foreclosure and the need to go for a short sale. They know that this is a stressful time and support of any kind for the homeowner is welcome. In the incentive scheme of Chase mortgage short sales, homeowners are given $10,000 up to $30,000 when they have completed the short sale transaction. This money comes as an incentive and financial assistance for the homeowner’s relocation. This incentive is usually given if the homeowner has completed the transaction and has followed all the terms and conditions included in the short sale process. Moreover, if the homeowner is eligible in the government-sponsored Home Affordable Foreclosure Alternatives or HAFA, he can still receive the $3,000 cash incentive given by the government for relocation expenses.

The Package
If you are going to avail of the program, the Chase mortgage short sales program is typically in two versions. The full package that the program allows and provides the homeowners a chance for loan modification if the homeowner has not yet availed of this option in order to avoid foreclosure. It is in the supplemental application packet where the forms and guidelines are included so the homeowner can initiate a short sale transaction. The forms needed for short sale process includes the application form, IRS form 4506-T, documentation checklist and form authorizing real estate agent to proceed with the short sale. You can download these packets in PDF forms from the website of JP Morgan Chase.

Why JP Morgan Chase is offering this Short Sale Program
Chase of course has expressed its intention to help homeowners avoid foreclosure and save their credit record score for future loans. Chase, as it has been mentioned here, wants to alleviate the hardship a homeowner has to endure when facing a foreclosure. When faced with foreclosure, homeowners usually do not know what to do next and in a scramble to start anew, mixed emotions of sadness and worries are present.
From the business side, Chase mortgage short sales are also beneficial to banks. First and foremost, foreclosure cases usually take years to process and this is an added expense for the bank; a typical foreclosure process last up to two years. By enticing their borrowers to go for a short sale, the bank no longer has to spend on attorney’s fee, property taxes and court costs. The bank also has the opportunity to speed up writing out bad loans.

What if you have Listed Your Home but are not Selling
There are still some challenges if you are one of those who have jumped aboard the short sale option. For instance, if you have listed your home but it is not selling. In the Chase mortgage short sales program, you will be advised to contact your real estate agent to determine whether you home is listed properly. What this means is whether your house has been competitively priced. You and your real estate agent can also contact a Chase Loss Mitigation expert to review what options are available for you if the house is not selling.

This information is basically what you need to know about the Chase mortgage short sales program. During these difficult times of real estate economic meltdown and with unemployment on the rise, the grim prospect of facing foreclosure is great. This is the reason why JP Morgan Chase chooses to help homeowners who are trapped deep in the hole of their mortgage payment. The program is designed to help homeowners avoid foreclosure and start anew with their lives. By getting in contact with a short sale Realtor, you will be able to better understand the Chase Mortgage short sale process and how you may be eligable!

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Are you looking for a Detroit short sale Realtor to help you with your short sale? Contact us now, and let us help you get qualified for your short sale! Need a Detroit Certified Distressed Property Expert in short sales to offer free Chase short sale services? Our Detroit area Certified Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Michigan Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

Steps to Complete a Short Sale?

In today’s economy more and more people are finding themselves in a financial bind. Unemployment is at an all time high, and homeowners are feeling the wrath. Whether people have lost their jobs, encountered other hardships, or simply owe more than what their home is worth, there is a prevalence of foreclosures, defaults and other credit damaging transactions taking place.

The first possibility for a homeowner is to attempt a loan modification with their lender. Even if the lender agrees to the terms, which is never a guarantee, an owner may find themselves with a larger balloon payment on the end of the loan. If you have become delinquent or will become delinquent on your loan status due to unemployment or income reduction, it may be unlikely that you will prequalify for new loan terms.

Two other options for a delinquent owner are foreclosure and strategic default. Both look incredibly negative when being reported to a credit bureau, but one may be worse than the other. A strategic default is when a homeowner simply walks away from a loan. This type of default is never explainable in future credit situations and there may be harsher repercussions down the line than a simple foreclosure would entail.

A foreclosure is also when a homeowner is unable to pay back the loan according to the set terms. Eventually a foreclosure will end in the termination of the homeowner’s rights to the property. The estate will become the property of the lender and the borrower will be evicted from the premises. In the current economy almost four percent of homeowners are facing foreclosure; there were five hundred thousand evictions due to foreclosure last year alone. Going into foreclosure is extremely detrimental to a borrower’s credit score, as it can drop the score by three hundred points or more and also last on a report for up to seven years. During this time it will be extremely hard for a consumer to receive any kind of credit line.

With all of the above information, it may be in the homeowner’s best interest to engage in what is called a short sale. A short sale is when a lender agrees to accept less than the total amount due for a current loan. If you have found yourself unable to make your monthly payments and are facing foreclosure, the best bet for your mental well being and your credit report is a short sale. Although not all lenders will agree to a short sale, it is imperative that you pursue all avenues that are open to you. It is vitally important that you contact a Detroit short sale Realtor who is familiar with short sale techniques and procedure. Here are a few short steps on how to go about initiating a short sale:

See if your home qualifies.
The single most important step in getting a short sale approved is finding out if you, your home, and your lender qualify for this type of settlement. Each bank or mortgage company is different and each will have a separate set of guidelines to proceed. If you are unsure or even if you are sure, you should ask to speak to the supervisor who oversees short sales. Do not ask for merely a representative, this is an important business matter and should be discussed with the most qualified individual your lending institution has available.

 Submit the appropriate documents.
When you went through the process of buying your home, you had to undergo extreme financial scrutiny. Be prepared for this same type of treatment when you decide to pursue a short sale. There are numerous pieces of paperwork involved that will not only help the lender decide if they can approve a short sale, but also will help the institution understand your exact set of circumstances. Some of the paperwork needed is as follows.

a. Letter of Authorization – This is a personally written letter stating that you are allowing your personal information to be reviewed to see if a short sale can be approved. You will provide the property address, the loan reference number, your name and date, and your real estate agent’s information.
b. Preliminary Net Sheet – The PNS is an itemized list of estimated closing costs regarding a possible sale. If the bottom line shows that there will be a cash transfer to the seller, than a short sale is no necessary nor will it be approved.
c. Hardship Letter – When writing a hardship letter to your lender, keep in mind that a person will be reading it. It is often easy to assume that the person at the loan office is an evil being, but they will understand circumstances beyond your control such as unemployment or serious illness. It must be stated that dishonesty or criminal behavior will not be tolerated. Write the letter truthfully and explain your situation.
d. Proof of Income and Assets – In a short sale negotiation it is going to be important to prove that you cannot pay back the loan at the terms prescribed. By providing the company with your bank statements, checks, and a list of real property owned, you will be helping to show just how dire the situation may have become.
e. Comparative Market Analysis – This information will be provided by your qualified short sale real estate agent. The comparative market analysis will show the lender that the current market value of the home is actually less than the remainder of the loan. The analysis will contain information on three types of homes; active market homes that are similar, pending sales on similar homes in the area, and homes from the area that have sold in the past six months.
f. Purchase and Listing Agreement – The purchase and listing agreements will allow the lender to see just home much money is being offered on the table that will go towards the outstanding balance on the loan. In addition, the agreements will be used by the lender to negotiate commissions and other fees with the real estate professionals.

When a homeowner is faced with the possibility of losing a home, the emotional and financial stress can be overwhelming. With a short sale a homeowner will be able to retain some control over the outcome. If you find yourself in this situation, then you should look into finding a qualified short sale specialist who is experienced with short sales and start moving in the right direction!

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Do you want to see if you qualify for a short sale? Our stop Michigan foreclosure specialists provide FREE short sale services!  Need a Detroit Certified Distressed Property Expert in short sales to offer free Broker short sale services? Our Detroit area Certified Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Michigan Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011

Why a Detroit short sale is beneficial for you

Times are tough and money, well, money is definitely not growing on trees. People in today’s society are finding it to be a struggle to pay bills, let alone think about their next meal. Back before the high unemployment rate and the recession started taking such a drastic fall, the housing market was great; people were buying houses and living the life they planned for. However, what felt like in the blink of an eye, those homeowners started feeling the wrath of the recession and not being able to commit to their mortgage payments any longer; Financial hardships are taking their toll and not budging. Many homeowners have been forced to think quickly about what to do with their home due to their lack of finances to keep it. Unfortunately, more often than not, homeowners are not thinking clearly when they are making their final decisions. The good news is that you do have options available and you do not have to opt for a foreclosure.

A clearly beneficial option would be to qualify for a short sale. A short sale gives the homeowner the ability to get out of their home and on with their life typically without any debt attached. How does a short sale work? Basically, a short sale happens when the homeowner contacts a short sale specialist Realtor about their situation and then proceeds to contact their lender and seek permission to sell the home for less than it is now worth in today’s market. More than likely a lender would agree to the possibility of a short sale due to the costly proceedings a foreclosure would bring.

There are several beneficial factors to a short sale for the homeowner. One of those being the drastic difference in the way your credit will look after all is said and done.  For example, a foreclosure could dramatically drop your credit score by 300 points, whereas a short sale will usually affect your credit on average around 50 points.  The biggest effect is on the amount of points that will come off your credit will typically be  missed mortgage payments.  Another example is the amount of time you will be able to qualify for another loan- which also means how long it will be until you can start living your life again.

A foreclosure will linger for up to seven years, while a short sale can allow you to recover within two years.  Two years is a great amount of time to save up and start becoming established so that you can continue the life you’ve desired. Perhaps the greatest benefit of a short sale would be the conclusion of a short sale vs foreclosure. During your foreclosure, if it does not sell during auction time, it will have to go through the bank REO system, which will be a longer drawn out process resulting in a higher deficiency judgement for you. In a short sale, when the home is sold, it is sold typically around market value and is usually a higher amount than a foreclosure sale which would mean a lower deficiency. However, the deficiency after a short sale is most often forgiven; higher the price, the less your lender loses.

Short sales are also beneficial because you will not have to worry about the looks and whispers of neighbors because of the big “foreclosure” sign in your yard. In a short sale you will still be able to walk away with dignity, while also with a more positive outlook and greater plans for your families future. We all deserve a second chance and our agents realize this. Another one of the greatest benefits of opting for a short sale, is being able to have a genuine, experienced and knowledgable short sale specialist Realtor assisting you. Our specialists know how important it is for you to want to quickly be released from your situation and the ability to start over, fresh and with a clear mind. Choosing the right short sale Realtor is a very important part of your short sale; expertise and compassion come hand and hand with the right specialist. There is no doubt that our Network of highly motivated individuals are what you’re looking for. Contact us and let’s get you through this together.

www.Short-Sale-Specialists.com

877-737-4903

Ask a local short sale specialist!

Do you want to see if you qualify for a short sale and need a short sale specialist? Our stop Michigan foreclosure specialists provide FREE short sale expert services to Detroit homeowners in hardship. Contact us now, and let us help you get qualified for your short sale! Need a Detroit Certified Distressed Property Expert in short sales to offer free Broker short sale services? Our Detroit area Certified Distressed Property Expert real estate agents are here to help, and are Certified or trained in the Michigan Home Affordable Foreclosure Alternatives, or HAFA Government short sale program.

Copyright First Coast Realty Associates 2011