The Short Sale Grind

The influx of new business into Northwest Debt Management has caused some unique scenarios to crop up on a daily basis.  This past week has been particularly interesting with Lenders finding new and creative ways to make the short sale process more difficult than it needs to be.  Below are 3 examples.

Not Quite the Digital Age

A dream scenario for anyone selling a distressed property is a full price, cash offer.  We received one this week.  Buyer and seller signed via Docusign.  For those of you who don’t know, Docusign is a company that allows you to sign contracts electronically through email and the internet. Gone are the days of faxing 10-20 page documents over and over, or having to drive all over town to get signatures or initials on pages.

These electronic signatures are easy, clean, green, and totally legal according to the Electronic Signatures Act passed in 2000.

Try telling that to Chase. [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…]

Navigating Short Sales in Oregon

I had the pleasure of attending a short sale training class this past week that focused on clarifying Oregon Law as it applies to handling short sales.  It is amazing to me how many agents aren’t aware of what they can and more importantly can’t do when it comes to the handling of short sales in Oregon.

To Protect and Serve

Because of the financial impact now and in the future, the State of Oregon has passed laws to regulate what is required of anyone receiving compensation on a short sale transaction.  You will want to read ORS Chapter 697 to get all of the details.  But I will highlight a few points that most real estate agents aren’t aware of. [Read more…]

Short Sales for FHA loans

We just closed another short sale last week where the existing loan was an FHA loan.  HUD (who runs FHA loans) has a very specific set of rules with regards to short sales.  Here is a list of some of the pros and cons when dealing with a HUD short sale.

The Good:

HUD has a predetermined price that they will accept when doing  a short sale.  This price is based on an appraisal that can be completed well before an offer is placed on the listing.  They will tell and agent upfront what they are willing to accept.

No games, no gimmicks, no guessing.

They will take 88% in the first 30 days, 86% in the next 30 days, and 84% after that.  Note that this is the NET price that HUD will take.

They will also pay up to $1000 to the seller for relocation expenses.

The Bad: [Read more…]

Doing Work That Matters

I met with another homeowner this week who had a failed attempt at a loan modification. His home goes to sale at the courthouse in about 90 days.  He’s come to realize that a short sale is a better alternative to a foreclosure but he is frustrated with the process that has brought him to this point.

Navigating Without A Compass

I hear the most amazing stories when helping homeowners with a short sale on their home.

Hours on the phone, lost paper work, rude phone calls.

It’s no wonder why people are so upset with their lender that they are willing to walk away despite the increased damage it will do to their financial future.

In this particular case a real estate agent brought me on board to handle the short sale while he marketed the property for the seller.  The seller had been told that he was getting a modification on both of his loans.  Not true. [Read more…]