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…]

This could be HUGE!

Last week I watched a web cast with an executive at BofA and he stated that they expected to increase the number of short sales they do in 2012 by 60%.  It looks like they are finally realizing that short sales are more beneficial  to the banks as well as the seller.  There is just one small problem…

They are not set up to handle that.

So I thought…

Cooperative Short Sales

As an alternative to the HAFA short sale option, BofA has rolled out a Cooperative Short Sale that promises to get approvals in 10 days.  You can submit an application at the time the home is listed and market a pre-approved short sale.  This looks to be very similar to HAFA without a huge amount of forms to fill out. Streamlined paperwork and less financial disclosure means this process can really be done quickly.

Imagine a world where short sales closed as fast as traditional home sales. [Read more…]

What The Heck is a HAFA?

HAFA stands for Home Affordable Foreclosure Alternatives and it is part of the Making Home Affordable program created by the Obama Administration to help homeowners avoid foreclosure.

Unlike most features in this program, HAFA is used when staying in the home is not affordable or is too much of a burden to bear and a short sale is needed.

In order to truly understand HAFA, you need to know that its is a supplement to a program called HAMP (Home Affordable Modification Program).  The goal of this program is to keep distressed homeowners in their homes through a loan modification.  Because there is a large number of homeowners that can not qualify for a loan modification, have defaulted on a loan modification, or just need to sell, the HAFA program was introduced as a way to “exit gracefully” in their words.

The features and benefits to a HAFA short sale are many…

[Read more…]