Success with Countrywide-- Short Sale APPROVED!

I normally don't list our successes-- we've had the fortune of getting approvals on most of our short sales, but this one bears mentioning!

Our clients approached Countrywide requesting a loan modification about 18 months ago. They were denied. We put the house up for a short sale and shortly after had an offer to present Countrywide. It was a decent offer. They sat on that offer for five months and then closed the file for lack of response from the mortgage insurer.

A few months after that file was closed we had a new ($25,000 less) purchase agreement and after four(!!) additional months we finally have full approval.

Because we have worked steadily and aggressively on this file the seller (and Countrywide) avoided a sheriff sale. Now if only we could motivate that banks to act upon these promptly--- Countrywide could have saved a TON of money (not just the $25k that this purchase agreement netted them-- but also lost interest revenue, time spent with negotiators, tax expenses and more).

Don't get me wrong---- I am thrilled to get the approval!

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Attn Twin Cities Residents Loan Modification Help Still FREE!

Just a reminder, my team and I are still helping Twin Cities residents with free loan modifications. Here's what we do, we send you an authorization form, a finanical form and a list of financial back up required. After we recieve that information from you, we submit a completed package to your mortgage lender. They we follow up with them over their review process (can be more than 60 days) until they make a decision on your file.

We will do this for free! And a loan modification should always be your first attempt at saving your house!

Email me now to get started!

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Second Mortgages getting STICKY!

I have said it before but so many people haven't heard it. If you have a second mortgage and go through foreclosure in Minnesota--- that second mortgage is not gone. It has detached from the property but now it wants to attach to you!

In order to get rid of the second mortgage you need to settle with them in some way or file bankruptcy. I think on of the best ways is through a short sale. The first mortgage will allow the second mortgage something in the negoiation and you may have to agree to pay the second some addition money (oftne in a romissory note) but you know where you stand with that second mortgage.

If you do nothing and go through the full foreclosure, the second has a right to place a defiency jdgement against you. With that type of judgement, they can garnish wages, tax returns etc...

Be proactive! If you have questions or want to talk to me personally call me at 612-701-7965 or email me anytime. As always, no cost or obligation!

Check out my other posts on second mortgages:
http://helpwithforeclosure.blogspot.com/2009/08/second-mortgages-getting-sticky.html
http://helpwithforeclosure.blogspot.com/2008/12/promissory-notes-and-second-mortgages.html
http://helpwithforeclosure.blogspot.com/2008/12/second-mortgages-getting-harder-to-deal.html
http://helpwithforeclosure.blogspot.com/2008/08/is-bremer-bank-bully-you-decide.html
http://helpwithforeclosure.blogspot.com/2008/06/my-second-mortgage-is-chasing-me-or.html
http://helpwithforeclosure.blogspot.com/2008/02/have-you-been-using-your-home-equity.html
http://helpwithforeclosure.blogspot.com/2008/01/what-happens-to-second-mortgage-during.html

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In case you need to hear it again, SHORT SALES benefit ALL!

The Washington Times recently had a cover story on how short sales help buyers AND sellers. In case you needed to hear it from in impartial source, you can read it here!

Let me just add, short sales don't just help the buyers and sellers, they help our entire economy! Banks are able to liquidate losses months or years before they would otherwise have the opportunity and niehgborhoods are able to retain better home values than if the property went through full foreclosure.

Short sales are not an easy answer. Sometimes they don't work out and they require a TON of patience from all involved. But for now, they are the best answer we have to the foreclosure crisis.

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Why Strategic foreclosure is dead (almost)...

It wasn't so long ago that it was easy to buy a house and let your other house go into foreclosure. The term for this is Strategic Foreclosure.

Lenders have wised-up! (This seems to be one of the few areas on which they have wised-up!) Now most lenders are requiring 6 months of reserves for both properties or a substantial amount of equity in the current property before they will allow the purchase of an additional.

There are other options. If you truly can't afford where you're at... consider short sale-ing and purchasing contract for deed. There are also a small number of private lenders that are willing to lend to homeowners who have done short sales because of a short term financial "blip".

Read my other post on Strategic foreclosure:
http://helpwithforeclosure.blogspot.com/2008/08/strategic-foreclosure-is-it-your-plan.html

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Even the Simpsons are in foreclosure!

You know it's bad when even Homer and Marge face foreclosure!

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Are you feeling confident? Are things getting better yet?

All the recent talk in the media about recovery doesn't match with what I am seeing and I am wondering how you're feeling.

I am still seeing lay-offs and job cuts, people I know are still nervous about losing jobs, hours and pay. I am still getting calls from people everyday who are struggling and don't think they can make it (don't forget you can email me for help!).

Post a comment and tell us all what you're seeing or send me an email... I want to hear from you what's really going on!

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Redemption.. after the sherif sale

In Minnesota, we have a period of time after the sheriff sale that the homeowner still "owns" the home. During that time, they can "redeem" the property. That means they can pay-off the first mortgage for the amount the property sold for at the sheriff sale and get the property back OR sell the property, pay off the sheriff sale and walk away with any extra. A second mortgage would still need to be dealt with.

For example, we just had a home listed in Brooklyn Park that sold for $46k (he had owed the 1st $178k) at sheriff sale. We sold the property for $130k. He paid off his second mortgage and still walked away with $17k! These sales require no bank approvals (on the seller side) and can happen quickly.

Again, these sales are better for your credit than a full foreclosure. The banks have some latitude on how they report this.. but they can be reported as paid or satisfied. This is a better option than stategic foreclosure!

Call or email me to find out how much your home sold for at sheriff sale or if one of these redemption sales could work for you!

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INDY MAC throws HUNDREDS of THOUSANDS of dollars away!

Indy Mac has put a new policy in place that wastes TONS of money.. probably not hundreds of thousands of dollar but more on the scale of millions of dollars. Indy Mac's new policy is that they will not consider a short sale after sheriff sale.

What does that mean? Well in a redemption state like Minnesota, the current owner retains rights to the property for SIX MONTHS after the sheriff sale. By refusing to do anything after that sheriff sale, they are still accumulating interest, fees, taxes, insurance and all the deferred maintenance expenses on that house during the six month period.

For what? Are they hoping price will be higher in the spring than they are now? Highly unlikely and they cost of holding this on their books, re-keying, hiring an eviction attorney, winterizing and BPOs with be in the thousands for EACH property. Then add more devaluation in the market place (I believe we have quite a way to go STILL before bottom) and this could easily be $100,000 on a single property!

WISE UP IndyMac! WISE UP Goverment! Stop the bleeding and start being proactive!

This is ridiculous!

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Unsolicited Principal Reduction Offer from BofA

Unsolicited Principal Reduction Offer from BofA

Posted using ShareThis

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Aurora Loan Servicing (ALS) slowdown

Happy New Year! My recent lack of posting has not been for a lack of mortgage and foreclosure news... but we all need a break around the holidays right? Plus we have been hopping with short sales and buyers!

One recent change in the short sale marketplace has been Aurora Loan Servicing. It used to be you could expect a 60-day turn-around on short sale decision with them. That timeframe has been blown out of the water! Now on one were working on... we are fast approaching the 120-day mark. They have done two BPOS ("unbaised" realtors telling Aurora what they think a realistic price for the home) by the same REALTOR (doesn't make any sense to me!) and we're still not a decision point.

This particular sale is a no-brainer. It falls in line with what other homes in the neighborhood are selling for.... but the delays may cause Aurora to have to add this home to their inventory of foreclosed homes... can we say add $50k to your loss??

Get on the stick Aurora!

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2009 A Record Year for Foreclosures

MSNBC.com has an interesting article online today. It states that 2009 was a tougher year for foreclosures than 2008. It is interesting to me because I consistently hear from people that this crisis is over--- I DON'T THINK SO!

Here is an except from the article:
"The number of households that received a foreclosure-related notice rose 21 percent from 2008, RealtyTrac Inc. reported Thursday. One in 45 homes were sent a filing, which includes default notices, scheduled foreclosure auctions and bank repossessions.

In December, more than 349,000 households, or one in 366 homes, were hit with a foreclosure-related notice. That represents a 14 percent spike from November and a 15 percent jump from December 2008."

Combine the fact that people are still in trouble and that home values are continuing to slide, we have a recipe for a VERY long recovery and I question whether that recovery has really even started.

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Aurora and Fannie/Freddie Update

Back in January, I wrote about a short sale I was working on with Aurora. The timeline has been horrific. But now we finally have approval. Hooray, right? Not so much! We received the approval letter this morning and it requires a closing by TOMORROW... the redemption period is up on 3/1/2010. So why wait 7 months, and then approve two business days prior to taking the property back? How many buyers can make their lenders work that fast? How many buyers are cash buyers?

Well, we're still not giving up! We are working with an attorney and the foreclosure attorney to pull one or maybe two more magic tricks out of our sleeves on this one. Stay tuned!

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MPR NewsQ Blog features me!

Lucky me! My comments about the "new and improved" short sale changes made it into one on Paul Tosto's NewsQ blogs. This is the second time in about a month.

Here's the link.

I'd love to hear if all of the recent changes have helped you.. but I bet I will only hear silence. Not many that have talked to have found relief in the plans.

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Bank Of America Slapped with TWO class action lawsuits!

A couple of weeks ago, I was thrilled to learn that the law firm of Hagens Berman Sobol Shapiro filed class action lawsuits in Washington State and California against Bank of America.

The class action alleges that Bank of America does not respond to loan modification requests and had only granted 12,xxx permanent modifications under the HAMP program.

I loudly applaud! I have a client who was promised a modification reducing their interest rate to 2% back in Nov. 2009. They still have not received any paperwork and six months later are still making trial payments.

My only question is when are you bringing the lawsuit to Minnesota!


read the details here.

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NEW Short Sale Incentives!

Recently, the government rolled out new short sale incentives. If you thought it wasn't worth it to do a short sale before, it may now be worth it!

A few highlights:
* Up to $3,000 moving allowance
* Larger pay-out to your second mortgage
* Possibility of having your home be a pre-approved short sale

Of course, only certain lenders and mortgagelenders.blogspot.com/" title="mortgage types">mortgage types are included. Call me today and see if we can make this a no brainer for you! Free cup of coffe gift card for all in-person meetings!

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Rental Scams Still Going On...

Recently we spotted on of your listings available for rent on Craigslist. Our client is an investor and does normally rent his properties but this one he just wanted to get rid of. But upon closer inspection, we knew it wasn't him. The rents were just too low (you know too good to be true -- $700 month... so Mike from our office sent an email to the advertiser inquiring.

Here was the response:

God bless you for your interest about our House. This 3BR/2B is still available for rent. I am renting this house to a responsible and neat person or family who has the fear of God and treat my house as his or her own.

Presently Myself and my wife have moved out of the house due to my work transfer to Western Region in Africa and we will be away for good 5 years or more and this is reason why we are actually renting it out so if you are interested in taking good care of our house, then my family will be ready in accepting you as our new tenant who be fully in charge of our house.

If you really impress us by taking good care of our house then you will be allowed to stay as long as you wish okay.....This 3bedroom house 2bath. Ready to move in...

So get back to us on how you could take care of our house or perhaps experience you have in renting . Hope you are okay with the price of US$700/month with heat laundry facilities, air condition and so on and the deposit fee is $700... PETS ARE FULLY WELCOME! We are looking forward to hear from you ASAP.

So that will can forward you an Application to fill out and discuss on how to get the House for rent and also the Entrances keys and the document of our house,also are you ready to rent it now or when? Await your urgent reply. Thanks for your understanding.

We know they've had other inquiries because our office has been called by at least one potential renter who had driven by and saw our sign. Please do your due diligence! There are so many scammers out there!

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Are Modifications not happening because of disorganization?

The answer is YES! Or is it malicious? A recent article at ProPublica talked to homeowners who were foreclosed on while in the modification process. Some were able to get the reserved and some not. Propublica is giving the banks the benefit of the doubt. I do not. I think this is done with intent. Do the banks really care about helping you?

At what cost? After the sheriff sale, the reversal is going to cost someone (the bank may have to pay but who does that cost in today's bail-out situations?. Here is an excerpt from the above mentioned article:

Hill was able to avoid eviction ? for now. Chase reversed the sale by paying the man who?d bought the home an extra $19,500 on top of the $86,000 he?d paid at the auction.

And it's happening in Minnesota too. We're working with a client and their mortgage company, Saxon, who continually loses simple paperwork like the authorization to release information so we can talk on our clients' behalf. We have faxed and emailed one simple form no less than 26 times with electronic confirmation that it has been received.

And then there's the email I received last night. The person is working with Citi trying to get a modification. After going through multiple times dealing with Citi losing their paperwork, they were able to get a sheriff's sale suspended. But, whoops.... "So, the representative I spoke to on April 26th told me that I could reopen my files for the modification since I still qualify if I just fax in the documents and they'll suspend the foreclosure on my home. I faxed in the documents, they confirmed receipt of the documents, and yet my home was sold in the foreclosure sale on April 27th!"

I asked you at the beginning of this post if the banks really care about helping you. Really, I would like to know what you think. My experience has been that they do not. I can get them to modify (sometimes) and short sale (99% of the time) but I don't think it is because they care about helping... in those cases, I think they strongly believe they benefit... not that it is the right thing to do. You tell me!

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Home Prices up... Good news???

Today, Case Shiller came out with the pricing index for homes sales around the country. Minneapolis was up 2.5%!

Okay-- enough rejoicing. Remember this was in the wake of the homebuyer tax credits--homes were moving more quickly, many homes were getting multiple offers. In fact, we still haven't even closed all those files yet-- buyers have until 9/30 to close on agreements they wrote on or before 4/30.

Now, we are seeing lackluster showings and very low buyer activity. I expect we will see more than a 2.5% home price decrease before the end of 4th quarter.

And, to the rumors of renewing a homebuyer tax credit--- I say government BACK OFF. We still need market correction and you meddeling in the market is only prolonging the pain we will feel sooner or later.

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Americans' Credit Scores in the Tank

FICO reported recently that the highest number of Americans (25.5%) now have credit scores of 599 or below. That's right-- a quarter of all Americans are now in the situation that they either won't be able to get credit or the credit the can get will be too expensive.

The Huffington Post had a great article (you can read it here).

According to the article, "More are likely to join their ranks (poor credit). It can take several months before payment missteps actually drive down a credit score. The Labor Department says about 26 million people are out of work or underemployed, and millions more face foreclosure, which alone can chop 150 points off an individual's score. Once the damage is done, it could be years before this group can restore their scores, even if they had strong credit histories in the past."

These two things coming together will only serve to slow our recover even further.

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Business Change for me!

Just a quick announcement-- I have joined the Exit Realty Imagine office in Minneapolis. I am really excited about this change. I believe it will help me serve you better-- they have great systems in place.

Feel free to email if you have any questions about my change or short sales and foreclosures.

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Help! Wells Fargo is taking money from my bank account!

We recently heard allegations, again, that Wells Fargo has taking money out of a homeowner's bank account with out their consent. These people were also customers of Wells Fargo Home Mortgage but did not have auto pay.

I called an attorney who we regularly use for home mortgage matters and he said it MAY be legal. If Wells Fargo bank account agreement has language allowing them to "take" funds owed to them directly once they are deposited into a customer's account. He also mentioned, it may be argued that Wells Fargo Bank and Wells Fargo Home Loans are two separate entities and therefore it is not legal... but ultimately it will depend on the agreement you made when you opened the bank account.

The best advice, keep your mortgage company and your bank separate. Use two very separate companies... and the attorney recommends keeping another account as well just as a back up-- so if funds ever do keep "taken," all of your cash isn't gone in the blink of an eye. Even then, you would need to remove cash from that extra account quickly to protect it.

That mattress may be the safest place yet!

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Another local home-grown BULLY BANK

Okay-- I have to vent. TCF come on! I understand that you are a big "little" bank. I understand you're no Bank of America, Wells Fargo or Citi and that you can't absorb losses like those monstrousities can. But that gives you no excuse to be foolish.

Sometimes, taking a small loss upfront beats the HUGE loss you will be taking later.

Let's talk specifics. I have a client. He has two mortgages. TCF holds the second mortgage for $60,000. This client is in foreclosure. He hasn't worked a steady job in a year and a half... and he's single.

Being the proactive, smart guy that he is, my client decided to attempt to short sale his home. We work hard-- we get an offer in the $120,000 range. The first mortgage company allows TCF $3000.

TCF is not satisified with $3000. They want more (don't we all want more--- I do!). So the ask for $10,000 from my seller at closing (CASH, $10,000 from a guy who isn't working!!) and a promissory note to repay the $60,000 loan in its entirity.

So what happens? Well, the client can't come up with $10,000. He offers to bring ALL he can to closing (about $400) and I offer to reduce my commission by $1000 to help. TCF still say no.

The deal is off... the first mortgage will foreclose and take the house. TCF will not get $3000. They will have to persue the client personally for whatever they can get.

But guess what--- the client doesn't have money, you took his last asset. So maybe bankruptcy?

TCF! You could have taken $4400. But you chose door number 2 instead--- you now get NOTHING!

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A NEW piece of advice

In the world of loan modifications, shorts and foreclosures--- things change all the time.

Because of those changes, I have a new piece of advice for you facing hardship with your house. Don't move out until it's all over.

Dealing with the government on their HAMP and HAFA programs, can make for the smoothest possible solution for your housing problem. These programs have some strict guidelines and they are government monitored (we can hope there is accountability) but you won't even be eligible unless you're still in the house.

That being said, stay put and call me -- let's work together to try to solve the situation you're in!

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