From the monthly archives:

April 2009

Fullerton Short Sale Realtor – Seller Case Study

by vbindi on April 28, 2009

Fullerton Short Sale Seller Case Study  #31: Our team of Realtors who specialize in Short Sale at  ShortSalesASAP, conducted another successful short sale which we will describe herein.   We withhold some of the details regarding this property so as to protect the privacy of the previous homeowner.

The Property and Initial  Financing: This detached home was located in Fullerton, California, and consisted of a 3 bedrooms, 2 baths with 2 car garage and 1,700 square feet of living area, built in 1958.

The ranch style home was acquired by the homeowner in the Winter of 2005′,  and about 10 months later, the owner refinanced the property.  After the refinance there was a 1st mortgage with a loan balance of $810,000 and a 2nd mortgage of $180,000.    Both loans were fixed interest rates amortized over 30 years.

Local Market Conditions: In Fullerton, prices have dropped about 31%  since the height of the market in mid 2006′.   Southern California, has been  hit hard by the recession and nationwide mortgage loan crisis.    Due to the severe recession here locally, the income from the home owners small business had dramatically declined, and consequently were suffering a difficult financial hardship.  This prevented them from keeping current on the mortgage loans, and also eliminated the possibility of a loan modification.    The owners heard about us from a work associate, so they  contacted us as  to conduct a short sale.

Step A – Short Sale Preparation: We first gather all of the bank required documents from the homeowner which includes a simply financial statement, 2 months bank statements, several Pay Stubs, Hardship letter, and bank account balances. We package this information along with other market data and present our short sale case to the Banks.  After some expert  negotiations with the 1st and 2nd mortgage holders, we got them to preliminary agree to certain short sale terms and conditions.  During this Step, the home owner lived in the property as usual with no interruptions to their daily lives. And as a result of  their hardship, they were unable to make their mortgage and lived payment free.

Step B – Short Sale Marketing and Sales: With the Short Sale preliminary approved, we started the endeavor of  Marketing the Fullerton property for sale. This was advertised in the Multiple Listing Service and we kept the short sale status as Private Data hidden from the public.  The house was listed for sale for $689,900, which was approximately the market value at that time. After a period of about 24 days,  we procured an offer fro a qulaifed buyer for $640,000.  After some back and forth negotiations from our listing Realtor, we arrived at a price of $660,000.

Step C – Short Sale Closing: Our listing Realtor acquired all of the necessary signatures from the buyer and seller, and reviewed the loan qualification status of the buyer.  Once approved, we opened escrow, and our short sale team then packaged the new purchase offer, along with acquired Short Sale disclosures and Buyers loan qualification paperwork, and submitted the package to the 1st and 2nd mortgage banks.  After some  tough negotiations with our expert Realtor team, and associate attorney  got both the 1st lender and 2nd lender to agree to the short sale offer.   Once we received the bank short sale approval letters, we moved forward with the buyers closing through escrow.

Final Result: At close of escrow, the entire $990,000 in total mortgage debt was retired, and the seller rented a comparable Fullerton home and is now saving about $1,900 per month.  In addition, the homeowner is now working with our credit Restoration affiliate firm and will be able to buy another home early next year.

ShortSaleASAP is licensed with the California Department of Real Estate, and our services are free to the homeowner, for we are paid by the mortgage bank(s).  Here are the benefits and some of our accomplishments regarding our short sale services:

- Over a 93% Short Sale Closing Rate.
- Local Orange County Experts with a Verifiable Track Record of Success.
- Our Services are FREE to you for we Negotiate our Fee with the Banks.
- We are Attorney Backed.
- Most often we get 2nd TD HELOC debt deleted or highly reduced.
- Can many times Negotiate a “Cash for Short Sale Cooperation” fee for the Seller.
- Associate Credit Restoration Firm which can often re-establish credit in less than a year.
- Stop Foreclosure and live in the home Rent Free dependent upon Hardship.
- Eliminate all back Property Taxes.

If you have any questions regarding Short Sales, contact our team of experts at: (949) 388-3396 or drop us an email at: Info@ShortSalesASAP.com

Huntington Beach Short Sales – Expert Success Story

by vbindi on April 27, 2009

Huntington Beach, CA: The team of experts at the ShortSalesASAP Group, has closed over 93% of their short sales in the past 12 months.   Although, statistics gathered from the Orange County Multiple Listing Service (MLS), show that only 39% of all Short Sale properties listed for sale in Huntington Beach in the past 6 months, actually sold and closed Escrow.  Also, the California Association of Realtors recently reported that only about 19% of all Short Sales actually sell and close escrow statewide in California.  Why is the failure rate so high you may ask ? … the reasons are many.

A Short Sale is the most complex of residential real estate transactions. These transactions present a wide variety of obstacles that can easily trip up an inexperienced Realtor who may be a Short Sale novice.   Some of the most common problems that may cause many Huntington Beach Real Estate Agents to fail at a Short Sale are;  1.) lack of planning to avoid common problems,  2.) inexperience that prevents foresee predictable issues,  3.)  weak loss mitigation negotiation skills, and 4.) having too small of a team causing a Realtor to be spread to thin.

Here are some of the more common booby traps that can cause an inexperienced Listing Agent to  fail in a Short Sale;

1.- Listing Agent sets the listing price to low to obtain a quick sale.  Two  months later, the upper management at the  mortgage Banks review the purchase offer price compared to the appraisal.  They then reject the “low ball”  offer since it is not within price tolerances, and then the buyer gives up hope, and the Short Sale often falls apart.

2. – Listing Agent setting price too high.   This results in no showings, no offers, and then the Banks get impatient and may cancel the Short Sale process.

3. – Listing Agent not staying in regular communication with the buyers agent and buyer.  Due to the sometimes long escrow process, the Buyer looses hope and cancels escrow.

4. – Hiring the services of a 3rd party short sale negotiation company.   Many of these 3rd party Short Sale negotiation companies operate nationwide.  Often they receive part of their compensation upfront before the short sale is completed, and are comfortable with a 25% failure rate.  But not us…

5. – Listing Agent not knowing how to effectively package the Seller Short Sale documents in order to to maximize the probability of success.

6. – Listing Agent running one person band.  There are simply too many moving parts and surprises for a single individual to handle effectively.

7. – Listing Agent not managing the independent Bank BPO/Appraisal process.   If the value comes too high, this can sometimes kill the deal, or at the very least cause substantial delays.

8. – Many times, the 1st and 2nd Mortgage Bank don’t agree of the amount of the discounted pay-off amounts.  The Listing agent doesn’t know what to do next, and the deal dies.

9. – The 2nd Mortgage is a HELOC loan, and they agree to the short sale, but they  refuse to  release the homeowner from unpaid debt.   Seller says No and the short sale dies.  We most always get the HELOC debt removed or at the very least, get it highly reduced.

The ShortSalesASAP Group makes sure that none of the traps outlined above happen to their clients. These experts specialize in  Short Sale negotiations, marketing, and sales in Huntington Beach and elsewhere in Orange County  Calif.  We are the highest volume producers of Short Sale closings in Orange County, and we have a verifiable track record of success and close over 93% of our short sales. Our services are free to our clients, for we are paid by the mortgage banks.

Costa Mesa Short Sale – Seller Success Story

by vbindi on April 24, 2009

Costa Mesa, CA – Seller Short Sale Success Story: This article is a case study for a short sale that our team conducted on a detached home located in Costa Mesa, California.   Certain details about this property will not be revealed to protect the privacy of the previous home owner.  This single story detached home was 3 bedroom, 2 bath,  1640 square foot home, with 2 car garage, and was built about 60 years.

This ranch style home was bought many years ago, but was refinanced in the Summer of 2004′ for a loan amount of $680,000.  Then a 2nd mortgage HELOC loan was also obtained in the Winter of 2005″ for an amount of $140,000.   At the peak of the market in mid 2006′, this home had appraised for, and was worth about $875,000.  In the past 3 years though, prices have dropped about 35% in Orange county in in most of Costa Mesa.

The homeowner had a severe medical problem and was not able to work full time.  They inquired about a loan Modification, but their Debt to Income ratio was to high to qualify for a Lona Mod, given the decrease in income.  Also, due to this financial hardship the home owner was having difficulty keeping up with their mortgage payments.   They went on the Internet and found us and contacted us inquiring about a Short Sale.  The Short Sale process is broken down into 3 Phases as follows:

PHASE A: The Costa Mesa property was first put in our Short Sale Preparation Phase.   To start, our team obtains all of the required documents from the homeowner and contact the banks to present our short sale case.   Then, our negotiations personnel begins the process of negotiating the preliminary terms, price and conditions of the short sale.  Our expert team was able to obtain preliminary approval for the Short Sale from both the 1st and 2nd mortgage banks.   This Preparation Phase took about 6 weeks to complete. During that time the home owner lived in the property as usual, and was not bothered by any collection firms, other agents or prospective home buyers.  And, due to their hardship, were forced to stop making their mortgage payments and lived rent free.

PHASE B: At this stage, we started the Short Sale Marketing and Sales Phase.  Our team markets the property for sale in the Multiple Listing Service (MLS) for a price of at a price of $715,000.  After a period of about 3 weeks, we did not receive much interest, so we dropped the price to $675,000.  Within 2 weeks later, we received an offer a solid buyer for $620,000. After several days of back and forth negotiations, headed up by our short sale Realtor Nick Roshdieh, we obtained a purchase price of $645,000.

PHASE C: This final Phase of this Short Sale process is primarily the escrow closing and final bank negotiations stage.  Here we first gather the signed offer from the Buyer, and package the purchase offer, along with required Short Sale disclosures and Buyers loan qualification paperwork. We submit this  updated package to the 1st and 2nd mortgage banks, to conduct the final short sale adjustments of the terms, conditions and costs.  After some difficult negotiations utilizing our associate  attorney, we got Mortgage Banks to agree to this modified short sale offer.  Once we received the bank short sale approval letters, we moved forward with the buyers closing through escrow. The last Phase took about 43 days to complete.

When all was said and done, the entire debt on the home was removed from the back of the home owner.  Due to their financial hardship, the home owner was able to live in their property during this short sale process and did not make any mortgage payments payments. They were also able to rent a comparable home for substantially less then what their payments used to be. In addition, the homeowners credit was not as badly damaged as it would have been if the banks had foreclosed. They are now working with our credit restoration affiliate and their credit rating should be repaired to a level where they should be able to buy a home again in the near future.  Finally, we were able to convince the 2nd Mortgage HELOC loan to not come after the home owner for unpaid debt, and accept a complete satisfaction of debt for the $10,000 that we were able to negotiate for them.  If the homeowner had let this home got to Foreclosure, then the HELOC would have had a legal right to try to come after the property owner for satisfaction of the unpaid debt.

ShortSaleASAP is licensed with the California Department of Real Estate, and we are a Member in Good Standing with the Orange County Board of Realtors.  Our services are free to the homeowner, for we are paid by the mortgage bank(s). If you have any questions regarding Short Sales, contact our team of experts at: (949) 388-3396 or drop us an email at: Info@ShortSalesASAP.com

Short Sale Credit Rating Affects – Orange County, CA

by vbindi on April 22, 2009

Many of our Orange County clients ask us how a Short Sale will effect their Credit Rating ?  That is a valid and important question, which we will address herein.  First of all, this question really needs to be compared to an alternative to give the answer meaningful relevance.  The two alternatives to a Short Sale for eliminating mortgage debt, where the Orange County home is worth less then the total debt,  is foreclosure or bankruptcy.   (There is a third alternative called deed-in-lieu of foreclosure, but mortgage banks almost never go this direction, and the effects on credit are very similar to a Short Sale.)

First the disclaimer – trying to predict the exact outcome of ones credit report is very difficult.  The reasons why are many;  One, your credit is effected by many variables and it is difficult to isolate the effect of just one variable.  Two, the calculation of your FICO score is a constantly  evolving process, and the factors that were used 6 months ago, may not be the same factors they use today.  Three, your credit rating is composed of three different credit reporting agencies (Equifax, Experian, TransUnion), and they each use different processes and techniques to calculate ones FICO score.

Based upon our experience and reports from other experts in the field, a short sale is about 100 to 200 points less damaging to ones FICO score, compared to a Foreclosure, and about 200 to 250 less damaging then Bankruptcy.  The primary damage to the credit  rating is not the actual short sale, but the months of late payments.  So the less the number of late payments, the better to a certain a degree.  Not only is the FICO score reduction a factor to consider, but also of importance is the length of time the credit is negatively affected.

A Foreclosure will stay on ones credit report for about 7 years, while the effects of a Short Sale are several years less then that.  In addition, there is another positive benefit of a short sale compared to foreclosure regarding shortening the delay to renewed loan worthiness. Fannie Mae (FNMA) recently changed their underwriting policy for purchasing mortgages from Banks. A past Orange County home owner has to wait 5 years after a Foreclosure Sale before FNMA will underwrite a new mortgage loan. But, if the Orange County home owner conducted a Short Sale, then the wait time for a new loan with FNMA is just 2 Years !

Finally, we have established a association with a credit restoration company, that has worked with many of our past short sale clients. This company has been able to make substantial improvements to our clients credit scores, who credit was negatively effected by a short sale. But this company has a very difficult time improving ones credit after a foreclosure.

There are other benefits to a Short Sale for Orange County home owners, as compared to foreclosure or bankruptcy, which we will discuss in following articles. We published an eBook called “Should I Short Sale My Home?“.  For the time being, we are giving this away for FREE.. so just click on the previous link to get your copy.  For more information or questions, please fee free to contact us at: 949-388-3396 or drop us an email at:    Info@ShortSalesASAP.com

Rancho Santa Margarita Short Sale – a Success Story

by vbindi on April 17, 2009

A  Short Sale Success Story #35 -  We are proud to share another one of our success stories for a Short Sale we completed for a detached single family home in Rancho Santa Margarita.     Some of the details of this short sale transaction will not be shared so we can protect the privacy of the past property owner. This property was sold via a Short Sale in the winter time of 2009′ by the ShortSalesASAP team.

Property and Finance  Details: This Rancho Santa Margarita was a 3 bedroom, 3 bath, 2,370 square foot, 2 car garage, property that was built in  1997.    This detached home was purchased by the homeowner  in the summer of 2006′, for $765,000.    This home was purchase using a zero down 80/20 loan.  The 1st mortgage loan was $612,000, with Wells Fargo with a fixed interest rate loan.  The 2nd loan was for $153,000 and was an adjustable rate mortgage (ARM) with WAMU.

Market Condition: The real estate market here in southern California has been hit hard.  More specifically, home prices in Ranch Santa Margarita have been dropping about 1% per month since mid 2006′.   This severe market correction is due to the overheated southern California market that started in 1999,  and the nationwide mortgage crisis.

The property owners of this short sale were a dual income family, and the spouse lost here job in late 2007.  The interest rate on the 2nd mortgage adjusted higher, and the homeowner could no longer keep up with their mortgage payments. They looked into a Loan Modification, but even in the most optimistic scenario, they still would have been about $175,000 upside down on their home mortgage.   Once they decided to conduct a Short Sale, they contacted us in Spring 2008′.

Preparation Stage: We first met with the homeowner and answered all of their questions and concerns.  The listing agreement was signed, and our preparation officer gathered all of the required documents from the homeowner.  After review and packaging, we delivered these documents to the 1st and 2nd banks to present our short sale proposal.  5 weeks later, and after some cunning negotiations, our expert team was able to obtain preliminary approval for the Short Sale.  During this phase, the homeowner was able to live in the property as normal, with no  interruptions from  agents or buyers.

Sales and marketing Stage: With the preliminary short sale approval in hand, this Rancho Santa Margarita home  was tentatively placed on the market for sale.  It was originally listed in the Multiple Listing Service (MLS) for a price of at a price of $660,000.   After a period of about 3 weeks with no offers, the price was dropped to $620,000.   2 weeks later we obtained  an offer for $575,000.  After negotiations with our short sale listing agent, Nick Roshdieh, we had the buyer agree to a price of $590,000.

Closing Stage: With the final purchase offer in hand, we packaged the purchase offer documents, along with the buyer loan qualification letter.   This package was sent to the Banks and our short sale negotiator then went to work with the Banks to finalize the final short sale terms.   After a couple of calls from our Attorney Associate, we got the Banks to agree to the final short sale.     Once we received these bank  approval letters, we moved forward with the closing of escrow.

In summary:  The entire mortgage debt of $760,000 was deleted from the owners name .  Due to the owners financial hardship, they were able to live in the property for 5 months without making any type of mortgage payment.  They now line in a nicer rental home in a similar location, and are saving over $1,800 per month.  Their credit was not as badly damaged as would be if the banks Foreclosed.  Plus, they are now working with our Credit Restoration Specialist, and should be able to buy a home by late 2009′ or early 2010′

ShortSaleASAP is licensed with the California Department of Real Estate, and our services are free to the homeowner, for we are paid by the mortgage bank(s). If you have any questions regarding Short Sales, contact our team of experts at: (949) 388-3396 or drop us an email at: Info@ShortSalesASAP.com

Lake Forest CA Short Sale – Agent Success Story #19

by vbindi on April 15, 2009

Lake Forest CA Short Sale Success Story – Case Study #19: The team of experts at ShortSalesASAP, closed another short sale listing in Lake Forest, CA, which will be outlined here as Case Study #19.   We always eliminate certain details, and give approximate dates and dollar amounts in order to protect the privacy of the previous homeowner.  This particular short sale was a 2 bedroom, 1 bath condominium, with 835 square feet of living are, and built in the early 1980′s.

The condo was originally purchase by our client in July of 2005′, for a purchase price of approximately $387,000.  This top floor condo was acquired by the homeowner using a 5%  down – 5/15/80 purchase money loan. The 1st mortgage loan balance was approximately $308,000 and the 2nd mortgage had a loan balance of around $58,000.  Both loans were with Countrywide mortgage and the 1st mortgage was a fixed rate loan, and the 2nd loan was an adjustable rate mortgage.  The total loan balance was roughly $366,000.

Lake Forest CA property values have dropped about 36% since the height of the market in mid 2006. Southern California has been hit hard by the  nationwide mortgage loan crisis and the recession.   The short sale property featured in this article, also dropped in price substantially by about 38% to a value of $242,000, since it was purchased in mid 2005′.  This Condominium was upside down by about $125,000. The homeowners income also dropped due to the local recession, and was experiencing difficulty making their mortgage payments.   They contacted us as a result of a past client reference, to conduct a short sale.

We first gathered the required documents from the homeowner which includes; 2 months of bank statement,  a simple financial statement,   hardship letter, Pay Stubs,  and bank account balances. Our team of short sale experts review and package this information in the format that the banks request, and deliver to the banks.  After some cunning negotiations by our Realtor expert Nick Roshdieh,  we convinced the bank who carried both the 1st and 2nd mortgage, to a preliminary short sale approval.   This Preparation Phase took about 4.5 weeks to complete, and during this time, the homeowner lived in the home as usual with no interruptions to their daily lives. Due to their hardship, they were unable to make their mortgage and lived payment free for the entire duration of this short sale transaction.

With the preliminary short sale approval in hand, we started the Marketing and Sales process for this property.   This Lake Forest condo was marketed on the Multiple Listing Service, and also on the Internet but the short sale status was not displayed on any Internet advertising to the public.   The listing price was initially $263,000, which was close to the market value at that time.  After about 4 weeks on market, we obtained an offer for $235,000.   After several counter offers, our listing Realtor, Nick Roshdieh got the buyers to agree to a price of  $243,000.

Our short sale processing team, then went out to gather all of the necessary signatures from the buyer and seller,  review the loan qualification status of the buyer, and we opened escrow.  Our team then packaged the new purchase offer, along with required Short Sale disclosures and Buyers loan qualification paperwork, and submitted the package to the mortgage banks, to conduct the final short sale adjustments of the terms, conditions and costs.

After some tough negotiations with our expert short sale negotiator, and involving our attorney, we got Countrywide Mortgage to agree to this short sale offer of $243,000. With the final bank short sale approval letters in hand, we moved forward with the buyers closing through escrow. This last step was completed in about 44 days and this short sale was completed and closed escrow in the Fall of 2008′.

After the completion of the short sale, and close of escrow, the $366,000 total mortgage debt on the home was deleted. The homeowner was able to rent a comparable condo and saved about $800 per month. The homeowner was able to live in their home during this short sale process and did not make any mortgage payments. In addition, the homeowners FICO score was not as negatively effected as it would have been if the banks had foreclosed.

ShortSaleASAP is licensed with the California Department of Real Estate, and our services are free to the homeowner, for we are paid by the mortgage bank(s).   If you have any questions regarding Short Sales, contact our team of experts at: (949) 388-3396 or drop us an email at: Info@ShortSalesASAP.com

Anaheim Short Sale Realtor – Case Study #42

by vbindi on April 14, 2009

Anaheim CA. – Short Sale Case Study #42 -   Our Real Estate brokerage firm specializes in Short Sales throughout Orange County, CA.  In this article, we will outline the completed Short Sale for a detached home located in Anaheim, Ca. that was listed, negotiated and sold by Realtor expert, Nick Roshdieh.   Certain details of this short sale such as;  property address, exact loan amounts, and names will not be quoted exactly to respect the privacy of the previous homeowner.

Anaheim Market Conditions: Due to the severe local housing market recession, and the national mortgage loan crisis, housing values  have decreased substantially in Orange County California as well as Anaheim.  Prices have been dropping about 1% per month for the past 2.5 years, but there are now signs that prices may be leveling off.

Property and Finance Details: The Anaheim short sale property was a 3 bedroom, 2 bath, 2 car garage with 2,160 square feet of living area on a large lot.   The home was originally acquired by the homeowner  in May of 2005′  for $745,000 with 20% down, and resulted in a 1st mortgage loan balance of about $596,000.   Two months later a home equity loan (HELOC) was acquired for approximately $85,000, and was used for renovation and additions to the home.  The total loan balance was about $680,000.  3.5 years later, this home dropped in value by about  22%, and the home was upside down by approximately $100,000.

The homeowner lost their job, and was unemployed for a substantial period of time, racking up credit card debts trying to stay current on the home mortgage loans.   After a while they soon realized they were digging themselves a deeper hole, and decided to contact us to conduct a Short Sale.  Our short sale processing is broker down into three phases:

Phase 1 – Prelim Short Sale Approval: After we met with the client and answered all of the questions and concerns, we signed the short sale listing agreement with the homeowner.  Our staff then gathered all of the required documents, reviewed for completeness, packaged and delivered to the 1st and 2nd banks.  Our lead Realtor presented our short sale case to the banks, and after some skilled negotiations, we were able to obtain preliminary approval for the Short Sale with tentative terms and conditions.

During this Phase, the homeowner was living in the home as normal, free from interruptions from other agents or prospective home buyers.  Due to their job loss and subsequent financial hardship, they were living rent free.

Phase 2 – Sales and Marketing: Once we obtained preliminary approval for the short sale, we placed this Anaheim ranch style home on the market for sale. This included listing on the Multiple Listing Service (MLS) for a price of at a price of $596,900.   After a time of about 3.5 weeks, we made a price adjustment to $587,900.   Two weeks later, we received an offer from a loan qualified buyer for $565,000.   After our several days of skilled negotiation from our expert Realtor, Nick Roshdieh, we arrived at a purchase price of approximately $575,000.

Phase 3 – Short Sale Closing: In the last phase of this short sale endeavor, we acquired the signed offer from the Buyer, and our Realtor interviewed the buyers mortgage lender to make sure the buyer was qualified to purchase this home.   Out expert short sale then began the process of gathering the required Short Sale disclosures, and signatures to present to the banks.  We submitted this package to the 1st and 2nd mortgage banks, and our Realtor began to conduct the final short sale adjustments of the terms, conditions and costs. After some additional negotiations,  our specialists obtained the updated short sale approval letter from the 1st and 2nd Mortgage Banks. Once we received these bank approval letters, we moved forward with the closing of escrow. The last Phase was completed in about 32 days.

Final Results: One – the entire debt on the home was eliminated and the homeowner owed nothing.  If this home had gone through foreclosure, the HELOC in 2nd mortgage position, would have had an unsecured debt similar to a credit card, and would have most likely goen after the homeowner in court to try to obtain a judgment.  But the Short Sale prevented this from occurring.

Two – Due the homeowners job loss and financial hardship, they were allowed to live in the home rent Free for many months, until the close of the short sale escrow.

Three -  Although the homeowners credit is damaged, but is is not as damaged as it would have been if the home was lost via foreclosure.  The homeowner is now working with the credit restoration that we refer to our past clients, and they are on track to having there credit rehabilitated to a level where then can then buy another home in early 2010 if they choose.

ShortSaleASAP is licensed with the California Department of Real Estate, and our team of experts specialize in short sale transactions.  Our services are free to the homeowner, for we negotiate our fee with the mortgage bank(s).  Our conversations with our clients are kept in strict confidence.  We have published an information packed eBook called – “Should I Short Sale My Home”, and can for the time being be downloaded for FREE.   If you have any questions regarding Short Sales, contact our team of experts at: (949) 388-3396 or drop us an email at: Info@ShortSalesASAP.com.

Obama Foreclosure Prevention Program helping OC Homeowners

by vbindi on April 12, 2009

The Obama Administration recently announced that  is moving forward with the foreclosure prevention plan which they claim with help as many as 12% of homeowner nationwide.   The program is geared to help homeowners avoid foreclosure for both lower income earners, up to upper income borrowers who owe more than their homes are worth.   The approximately nine million American homeowners that this plan may help, is designed to shore up housing prices,  slow a downward spiral in home prices, and stabilize neighborhoods throughout many areas of the USA.

Nearly 1 in 10 home mortgages is either delinquent or in foreclosure, and analysts estimate that at as many as 6 million households could lose their homes over the next three years in the absence of government action.

The banking industry has strongly resisted this proposal,  saying it would make investors unwilling to finance future mortgage lending. But Democrats in Congress strongly support the idea and banking executives are putting up less resistance than before.

Program #1:  The  Obama plan will create a $75 billion program to help the estimated 4 million homeowners in danger of foreclosure, by subsidizing loan modifications.  This program would reduce a family’s monthly payment to as little as 31 percent of its gross monthly income.

A mortgage lender would have to first make loan term alterations in order to  reduce a borrower’s payments to 38 percent of monthly income. To encourage lenders, the government would offer incentives, like a $1,000 upfront payment for every loan modified and more payments if the borrower stays current. If the lender gets the monthly payments down to 38 percent of the borrower’s monthly income, the government would then match, dollar for dollar, additional reductions to bring the payment as low as 31 percent of monthly income.

These loan modifications could be worked out  in several ways, from stretching out the repayment period of a loan to reducing the interest rate or reducing the outstanding principal.

Administration officials said that this plan to help homeowners facing foreclosure did not deal with second mortgages.  Second mortgages were often made by a different lender than the first mortgages, and would  greatly complicate negotiations over a loan modification.

Program #2:  To help homeowners who can still keep up with their payments, but who may resent the idea of rescuing others, Mr. Obama’s plan would make it easier to refinance at today’s very low interest rates.

The plan would apply to people with fairly traditional loans that are owned or guaranteed by Fannie Mae and Freddie Mac — about 30 million homeowners. The new loans would not be subsidized, but borrowers would not need to have a 20 percent equity stake in the house.

The big limitation of the refinancing portion of the plan is that it would not help most borrowers who are current, but under water. It would only be available for mortgages that are not more than 5 percent above the current market value of the house.   Estimates are that this program would help less than a million of the 14 million homeowners who are under water.

Program #3:  This program is more vague component of the plan is aimed at propping up the mortgage market as a whole by having Fannie Mae and Freddie Mac step up their purchases of mortgages and mortgage-backed securities.  Also, government official are working with major banks to encourage a more efficient and streamlined short sale process, to help alleviate many of the delays experienced today with such transactions.

We have jsut released our new eBook called “Should I Short Sale My Home“.  We are currently offering this eBook for FREE, so feel free to download your copy today by clicking on the previous link.

Should I Short Sale My Home? – Free eBook for Orange County homeowners.

by vbindi on April 10, 2009

Are you caught in today’s mortgage crisis?  If so, you are not alone for there are Millions of Homeowners trapped in a very similar situation.  Due this mortgage loan epidemic, and our vast experience in this field,  we decided to write an eBook titled - “Should I Short Sale My Home”…  This book is dedicated to help educate Orange County homeowners so they can make an informed decision regarding a Short Sale. We felt very qualified to generate this book for we are Orange Counties leading Short Sale practitioners.

This eBook is short and to the point, detailing information about the current mortgage crisis, how short sales work, and the advantages and disadvantages of a short sale for Orange County homeowners.   We though about charging for this book, but have decided to give it a way for Free.

CLICK HERE TO OBTAIN YOUR FREE COPY OF THE eBOOK -
“SHOULD I SHORT SALE MY HOME”

It is projected that over 10 Million homeowners currently have, or will have negative equity in their home in the very near future.  In other words, they will owe more on their homes than they are worth.  In Orange County, the number of homeowners projected to have negative equity is estimated at 200,000.

There is expected to a be a massive number of homeowners who are simply making the decision to sell their homes through a short sale versus staying in a home, hoping that one day it may be worth what they paid.  Late last year, CNBC financial guru Jim Cramer was telling homeowners to ‘Just Walk Away’ from their home and let it go to Foreclosure… that is a big mistake, for a  Short Sales is a better and more responsible solution then Foreclosure.  Our FREE eBook, will explain the reasons why.

According to some recent studies, approximately 40% of all Loan Modifications granted last year,  wound up in default and the homeowner either went into foreclosure or sold the home via a short sale.   Loan Modifications work for some homeowners, but in other situations, make no sense at all.  Again, our eBook will help to demystify the Short Sale process, and explain other Loss Mitigation strategies as well.

This eBook, consists of 10 Chapters, written in a direct and plain spoken  manner.  The chapters are listed below;

  • Chapter One - A National Epidemic Is Looming.   Are You Ready?
  • Chapter Two - How Bad Is It?
  • Chapter Three -Ok, I Get It. A Short Sale May Be My Best Option. Tell Me More
  • Chapter Four - What Is A Mortgage Foreclosure?
  • Chapter Five - You Have Been Warned: Foreclosure Scams
  • Chapter Six - What Are The Options For Homeowners In Foreclosure?
  • Chapter Seven - You Now Want To Short Sale Your Home: Top 10 Short Sale Questions, Answered
  • Chapter Eight - I Thought Rates Were Falling. Won’t That Help?
  • Chapter Nine - Life After Short Sale. When You Want To Buy A Home Again…FHA To The Rescue
  • Chapter Ten - Death Of The Home Equity Loan – Millions Of Homeowners Shut Out

If you have any questions or comments regarding if your Orange County home may be a candidate for a  Short Sale, please feel free to call us or drop us an email at:  Info@ShortSalesASAP.com

Dana Point CA Short Sale – Success Story #17

by vbindi on April 7, 2009

This is another successful Short Sale case study for a detached home located in Dana Point, Ca.   The details of the homeowners name, address, and exact financial details will be masked to protect the privacy of the homeowner.

This property was sold and closed escrow in March of 2009,  via a Short Sale by the OC Short Sale Team.   This single family detached home was 4 bedroom, 3 bath, 2,600 square foot home, with 3 car garage.

This roomy house was purchased in August of 2005′,  for $975,000 with a 20% down loan with Wells Fargo.  9 Months later the homeowner obtain a equity line of credit (HELOC) loan for $200,000 in 2nd position.  The first mortgage was about $780,000 and the total loan debt after the HELOC loan was $980,000.  The home went up in value about 5% from the time it was purchased until about springtime in 2006′ and then prices began to decline from there.

Since the peak in the local market in April of 2006′ prices have been dropping about 12% per year for the past 3 years.  This drop applies to most of Orange County, but has not as severe in Dana Point.   This featured short sale property has declined in value about 27% from the time it was purchased.   The homeowner had a financial hardship and a medical sikness in the family, and they were not able to keep up with their mortgage payments.

The first step in our short sale process for this Dana Point property, was to gather all of the required documents from the homeowner.  We then packaged these documents and sent them to the  banks to present our short sale case.  After some tough negotiations, our short sale specialists were able to obtain preliminary approval for the Short Sale.   During this short sale preparation period, the homeowner was able to live in the property as normal, with no interruptions from other agents or prospective home buyers.  Due to their financial hardship, the family was living in the home without making mortgage payments.

After the preliminary bank approval, the Short Sale marketing and sales effort began.  We advertised the property for sale extensively on the Internet and in the Multiple Listing Service (MLS) for a price of at a price of $789,000.  After about 3 weeks with no offer, we dropped the price to $749,000.   Then again 3 weeks later we lowered the price to $729,000 and received an offer 6 days later.   After two counter offers, we negotiated a price between the buyer and seller for $725,000.

This final step was to set up the short sale for escrow closing.   After we obtained the signed offer from the Buyer, we packaged the purchase offer, along with required Short Sale disclosures and Buyers loan qualification paperwork.   We rushed this information to the banks, and negotiated the  final short sale adjustments of the terms, conditions and costs.   After some tough discussions with our expert short sale Realtor team,  we received the bank short sale approval letters.  We then moved forward with the buyers closing through escrow. The last step was accomplished in about 32 days.

After the short sale was completed and the escrow closed, the entire mortgage debt was retired and the homeowner was forgiven from the debt of the HELOC loan.   If the home had gone to foreclosure, the $200,00 HELOC loan would have not be retired, and they could have gone after the homeowner for collection.   In addition, the homeowners credit was not as badly damaged as it would have been if the banks had foreclosed.   They are  planning on working with our associate premiere credit rehabilitation firm, so that they may buy another home within a year or less.

The OC Short Sale Team is licensed real esate Broker with the California Department of Real Estate, that specializes in short sales.  Our services are free to the homeowner, for we are paid by the mortgage bank(s). If you have any questions regarding Short Sales, contact our team of experts at: (949) 388-3396 or drop us an email at: Info@ShortSalesASAP.com

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