Short Sale Podcast: 002 – Hardships

In Episode 2 of the Short Sale Podcast we talk about Hardships and how they are integral  to the short sale process. You will learn the common hardships that allow for short sales to get approved as well as what will not get approved.  Visit this site for samples on how to write an effective hardship letter.

Short Sale Podcast: 001 – Top Question

In this inaugural episode, Dave McGuire of Northwest Debt Management discusses the #1 question he gets asked and the question that should be getting asked but isn’t.

Big Changes Coming to HAFA

It was announced on March 9, 2012 that the Home Affordable Foreclosure Alternative (HAFA) program was extended until the end of 2013.  Along with this extension come several huge changes that will benefit homeowners and allow for more participation in this program.

 

  • Occupancy Guidelines Waived
  • $3000 to seller even if tenant occupied
  • Up to $8500 to subordinate lien
  • Qualify even if current on payment
  • Credit reported as Paid in Full
Please note that I have not officially verified this information.  www.makinghomeaffordable.gov has not been updated to include this information.  I received this news from Alex Charfen of CDPE.

Let’s elaborate on these changes.

The first 2 changes mean that…

Do Your Short Sale Approvals Say The ‘Magic Words’?

My greatest duty as a Short Sale Negotiator is to be an Advocate for the seller.

The sellers that I deal with have often been run through the ringer by life in general, and their lender. They are often left without the strength to defend themselves against things they don’t understand.

“Deficiency Judgement? Forgivness of debt is taxable?”

Many of them have a hard time understanding the process, much less the consequences of a short sale if not done properly.  They have the misconception that selling their home on a short sale will be the last time they will have to deal with this situation.

I have a tremendous passion for defending those who can’t defend themselves.  This is why I push for HAFA, BofA’s Co-op, or the Chase Short Sale Outreach Program whenever possible.

All of these programs have a… [Read more…]

2 Big Reasons Why Banks Love Short Sales

In an earlier post I commented on the fact that Bank of America has gone on record to say that they plan to increase the number of short sales they do by 60% in 2012.  I want to explain why this is more than just a feel good policy and why other banks are doing the same thing in the State of Oregon.

There are 2 main reasons that point to an increase in short sales and they are both about minimizing loss and maximizing profits for the bank.

#1 – The bank nets more money in a short sale than in selling a bank owned home.

I  have seen several different statistics with varying numbers that support this fact.  Some experts say… [Read more…]