Maricopa, Arizona Short Sale

A current bill making its way through the halls of Congress, the American Housing Rescue And Foreclosure Prevention Act was passed a few years ago by the Senate and House of this nation and signed into law by President George Bush. Many of the people in Chandler, AZ who are seeking information on foreclosure prevention have been asking for an explanation of this act of congress in terms that they can understand. People, quite simply, want a general idea if this foreclosure prevention is something that they can take advantage of. Here is what we have found out about the foreclosure prevention act.
The House of Representatives worked diligently several months ago to passed what they referred to as "the most comprehensive response to the American mortgage crisis" that the country has ever seen. At least that is their claim. The act is called The American Housing Rescue and Foreclosure Prevention Act (H.R. 3221) and was created to help out with the current crisis facing many middle class Americans that own homes while at the same time providing them with the needed help with foreclosure prevention that they have been asking for.
The act includes a variety of bills including actions to bring up to date the FHA and reform the GSEs, which could help with crucial liquidity to our real estate markets immediately while also supporting foreclosure prevention with better regulation and oversight.
The American Housing Rescue and Foreclosure Prevention Act was created to aid property owners in Chandler, Arizona facing who are foreclosure keep their properties. It is supposed to help a growing number of families with foreclosure prevention in the future, and spur the economy in places that have been hit hardest by foreclosures.
However, keep this in mind, after the American Housing Rescue and Foreclosure Prevention Act was signed into law, dozens of amendments were immediately made to it until it was so exclusive with its provisions that it only helped roughly one percent of the home owners that were looking for foreclosure prevention.
Some of those amendments include...
Amendment 1: FHA American Housing Rescue and Foreclosure Prevention Act (H.R. 5830). Only primary residences are eligible for foreclosure prevention. NO speculators or investment properties qualify. second or third Mortgages loan in the same property will not be refinanced and will not have any means of foreclosure prevention. So, if you have a second mortgage, which many home owners do, foreclosure prevention through this act will not be available.
The raw facts show that almost seventy five percent of current homeowners seeking foreclosure prevention today have a second or third mortgage. That is an enormous group of people that can not get any foreclosure prevention help.

For more videos on short sales check out Kevin and Fred on the Short Sale Power Hour. Video for Short Sale Specialists.

MORTGAGE SHORT SALE refers to property that is sold for less than is currently owed on the mortgage. When used properly, a mortgage short sale isbeneficial to all parties involved. Property owners can sell their home for less than they owe at the bank. Banks are able to recover the majority of their investment. Buyers can purchase a piece of real estate that is in good condition for less than market value.

Getting mortgage short sale approval in Phoenix, Arizona can be a difficult task. In the past, the vast majority of mortgage short sale requests were denied. However, with the help of a real estate expert familiar with the mortgage short sale process, your approval rating can be nearly 100 percent possible.
Using the mortgage short sale process in Phoenix, AZ is similar other financial problems. Borrowers need to provide many documents showing why the need to use the mortgage short sale process. Lenders usually request a list of income sources and expenses, tax returns from several years, pay stubs and employment records, credit card statements and bank statements.

Mortgage short sales are commonly handled by a bank's loss mitigation department. This department is assigned to help the home owner work through the process. Their primary job is to make things go smoothly for the buyer, the lender and the seller.

Loss Mitigation Departments do not get to approve the mortgage short sale of a property. However, their opinions can be very important in the decision to approve a mortgage short sale. The loss mitigation department is more apt to support your need for a mortgage short sale if you have a real estate agent working with you to help you out with the details.
The home owner considering a mortgage short sale should compile all of the necessary information and contact a real estate agent before they inform their lender that they are considering a mortgage short sale. The loss mitigation department will appreciate working with a real estate agent and home owner that understand the process of a mortgage short sale.

The home owner will need to provide a hardship letter. This letter can determine whether you get approval or not. It should clearly define why you need to use a mortgage short sale to save yourself.

A mortgage short sale is a great alternative to foreclosure. Be sure to obtain a Payment in Full agreement from the lender when using the mortgage short sale. When banks accept payment in full, forgive any remaining balance that you owe on your mortgage.

Some lenders will require you to pay the difference between the sale amount and the payoff amount of your mortgage. When the home owner is unable to pay this amount it can leave a black mark on their credit report which will stay there until the difference is paid off.

If the home owner can overcome their current financial problems, they can go about purchasing another home in a relatively short period of time.
If you can't make your mortgage payments, talk to your bank about the possibility of a mortgage short sale. Get educated about the process and find a real estate agent that has experience in such dealings.

Watch Kevin and Fred, Short Sale Specialists, on the Short Sale Power Hour. Video for Short Sale Specialists.

Today is a fantastically special episode, because the plan for this episode is that Kevin will not speak. If he does, Kevin and Fred may end up in a courtroom. They were really fired up about this situation when it happened. So, they had to wait a little bit before talking about it today.

Kevin and Fred have a folder with Aurora Loan Services. To be honest, Aurora does a grand job of setting up folders and ordering BPO's. However, their method as a whole is getting worse. It seems that they have a glitch processing their short sale folders. There is a BPO and the file is verified. All that is left to do is hand it to the investor or make a judgment. However, they like to tell people that they will just evaluate folders in a timely manner if there is a foreclosure sale date forthcoming. Kevin and Fred are being informed that they have to wait 90 to 120 days for your folder to get reviewed.

The folder that we have had a huge problem with has now been escalated to a Senior VP at Aurora. We are tired of having to send emails because they can't method short sale folders. The Senior VP only sought to tell us to back off. She didn't care about the particulars of the folder. Furthermore, this Senior VP decided to have an attorney telephone Kevin and Fred. The lawyer told them that they can not phone members of senior management anymore.

Plainly, the difficulty is not with Kevin and Fred. Aurora seems to have exceptional setup, but they do a horrible job of reviewing folders. Kevin and Fred are not asking for individual attention. They only want Aurora to enhance their method, which would benefit everyone. We understand that Aurora is overwhelmed with folders. However, they need to work on finding solutions rather than sitting on their hands.

If you have questions, get your Short Sale questions answered by Short Sale Specialists.

Watch this and more short sale videos by Kevin and Fred at Short Sale Power Hour

Also, follow Group 46:10 on their blog at Maricopa - Short Sale Arizona

Watch Kevin Kauffman and Fred Weaver of Group 46:10, Short Sale Specialists, on the daily Short Sale Power Hour.

It's not really too difficult to stop foreclosure, if you know how. As simple as it may seem - you could approach the creditor and let them know you are having trouble with your monthly payments. Don't let this be too long after you discover it yourself, because lenders aren't exactly known to be very patient with customers who violate the terms of a loan agreement.

After a couple of months of failure to make your payments, they start to frown and ask questions. But if you spoke to them first, they may just be inclined to reconsider some terms on the contract to give you more breathing space while you work out ways to make up the payments.

Another way to get help to stop foreclosure is to try talking to a different lender and telling them that you want to consolidate on the old mortgage. What that will do is most likely to get you a chance at the renewal of the original loan at the hand of this other creditor. Interestingly, this option often gets to win you lower interest rates and different time frame within which to make the payments. Otherwise, they could refinance you, which really isn't all that different. Certainly you can appreciate that, especially when the only other option would be for you to get kicked out.

And if you could hit the Internet, there are a lot of online aids that offer you various other options for how to seek and get help to stop foreclosure. You should check them out and find out which one is best for your current financial situation.

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With the short sell of a home, as previously stated, the bank is understanding that a loss on this transaction is imminent. So, in an effort to control the loss as best they can, lenders in Phoenix, AZ are becoming much more lenient in allowing the short sell. With the short sell there are far less hassle and headaches. There is much less to control and watch over with a short sell property too.
Negotiating a short sell in Phoenix, Arizona is not nearly as difficult as it used to be. With the rising in short sell homes, the investors of the world and real estate agents are becoming familiar with the process. That familiarity breeds knowledge and expedites the short sell process. With a short sell many parties get involved. Those parties include, but are not limited too
-the seller
-the seller's real estate agent
-the buyer or multiple buyers (anyone who makes an offer is a potential buyer)
-the real estate agent for the buyer (or buyers if you consider the above factor)
-the lender
-the loss mitigation department from your lender
So, the list of parties is extensive. However, with a short sell, you as the buyer can make this process much smoother by finding a real estate agent who has experience with the short sell process. Experienced short sell agents have the knowledge to contact all of the parties involved in the order and timely fashion that they are needed. The negotiate everything on your behalf. This makes the short sell process, from a seller's perspective, very hands off. And that fact alone is truly a blessing, given the fact that you are already probably up to your elbows in stress.
It is important to note that the previous paragraph is considered by most to be the most difficult challenge that awaits a seller in a short sell of their home. So, if hiring a real estate agent with experience in the short sell process eliminates your headaches dealing with all of the parties involved, everything else is easier.
Perhaps the most crucial step in the short sell process is finding the agent that can fill your needs. In many past cases, the home owner finds a short sell expert, stops paying the mortgage and simply goes about their own business. The only thing left to do is wait. So, if you can handle a little waiting and you are in financial trouble, short sell your home with the assistance of a real estate agent that has knowledge of the short sell process.
Part three, is the easy reading part of this fine short sell article. In it, we will show you the short sell process complete with examples to give you a deeper understanding of what is really going on behind this popular new method. Read on to get the juicy details.

We are embarking on day two with Trent Chapman and we're stunned by the number of appearances Trent has had on shortsalepowerhour.com. We asked Trent to come back to speak about the Short Sale Genius Designation course. Everyone knows that we are not huge fans of designations. We have contributed on our own designation in recent times, but we stole that from Trent. Yet, Trent has decided to do a real designation. The designation is for realtors who work with troubled homes.

The designation is different from other designations. With other designations, you go to a session and take an exam and obtain your designation. With the Short Sale Genius designation, there are special levels based on how many short sales you have closed.

If you take the class you will get a general designation, but it will also note how many short sales you have closed. Trent merely figured that taking a class and passing a examination did not make anyone an expert. So, he decided to introduce a little bit of common sense and honesty into the method.

On a different note, software is something that lots of other realtors ask about. Trent offers software that is state of the art with features that assist the agent that is doing a couple transactions or hundreds. His software actually coaches you along in the short sale route. There are red flags that let you know if a file is out of compliance or taking overly long. There is also a feature that permits the property owner to log in and see the status of their file. It was specially built for short sales. Check out the theshortsalegenius.com

If you have questions, get your Short Sale questions answered by Short Sale Specialists.

Watch this and more short sale videos by Kevin and Fred at Short Sale Power Hour

Also, follow Group 46:10 on their blog at Tempe - Arizona Short Sale Specialist

Short Sale Power Hour is delighted to welcome Trent Chapman, Short Sale Genius, back to the episode. Trent has spent a lot of time instructing realtors how to escalate. He provides a form letter on his website, theshortsalegenius.com, to provide people an exemplar of how to communicate the escalation idea to the bank. In essence, it gives a broad script as to how you can justify that the short sale is better than foreclosure.

Unfortunately, since too many people have merely copied and pasted the file, Matt Vernon may have a problem with it. For those that do not know, Matt Vernon is a bigwig at Bank of America. So, Trent will be getting in touch with Matt Vernon to chat about the escalation letter.

The plan behind the letter is that Trent wants to aid agents in knowing how to escalate. When you are addressing somebody that is higher up in the bank, you need to make the narrative as short as feasible. We suggest that you tell them the following. This is the house. It has been on the market for 'x' days. We have an offer. It's full market value. Here is the fair market value backed by these comps. Then you provide them the figures. With a short sale, you will earn this much money and if this forecloses, you will earn this much money. That is the gist of the email.

If you have questions, get your Short Sale questions answered by Short Sale Specialists.

Watch this and more short sale videos by Kevin and Fred at Short Sale Power Hour

Also, follow Group 46:10 on their blog at Casa Grande - Arizona Short Sale Specialist

Most things in Phoenix, Arizona today revolve around credit. Just ask a person that has poor credit or no credit at all. Poor credit or no credit can keep you from buying a car, renting an apartment or even getting a job. If you are a home owner facing the loss of your home, a mortgage short sale can save your credit. A mortgage short sale should be the first thing you consider in lieu of bankruptcy or foreclosure of your home.
The mortgage short sale process in Phoenix, AZ is probably something that you have never heard of or know little about. Although the process has been around for years, it has not been widely used until recently with the collapse of the banking industry and the housing market. The mortgage short sale can help home owners get out of their mortgage liability and retail relatively good credit.
Home owners who have a mortgage that is greater than their home's current value can qualify for a mortgage short sale. There are very few prerequisite that need to be met to utilize a mortgage short sale. First, you must be late on your payments. It also helps if you have little to no savings, because you will be asking your lender to take a loss on the loan.
In most cases, the owner will have the balance of the home "forgiven" as soon as the home is sold in a mortgage short sale. In order to apply for a mortgage short sale, you must contact your bank and you should also contact a mortgage short sale specialist to help you through the process. Your lender will request some documentation and information so you can be approved.
It is highly recommended that you find a real estate expert with experience dealing in mortgage short sale procedures. Lenders are more likely to deal with a person like this than with the home owner. And, obviously, the real estate expert can expedite the sale of your home.
When it comes to a mortgage short sale, your credit score will not be tarnished as much as if your home went into foreclosure. When your mortgage short sale is complete, your credit report will say "pre-foreclosure in redemption" and may reduce your FICO score by around 100 points.
With a foreclosure, your credit report will have a higher giant impact of at least a 300 point reduction on your score. This fact alone should be sufficient reason to execute a mortgage short sale.
Because of this impact on your credit score, you can resume your life without the burden of poor credit in as little as two years. The result of a foreclosure will take you at least ten years to rebuild your name and credit score. Without a respectable credit score, your only option in maneuvering around this world is to pay cash for everything.

Today, Kevin and Fred have decided to embrace a topic that they have never covered in the past. Also, they haven't ever discussed it in one of their Crush It courses. The topic is post short sale approval problems. In essence, you previously have an agreement from the lender and problems happen. How do you handle them? What is really occuring out there?

With a deal that closed yesterday, our escrow representative was looking to get the final HUD approval from our negotiator at Citi. It was closing today. The negotiator denied the closing HUD despite the fact that all of the provisions were met. The worst part was that the negotiator wasn't willing to talk in plain english to clarify that the HUD had to look a precise way. It is central to note that just because the transaction is approved, it doesn't mean it is completed.

Understand that your approval letter at most banks says that they have to approve of the final HUD. Because the approval letters do not specify what they are paying and what they are not paying, you might not know if they will grant it.

We had another post approval problem of late, with an approval from the coordinator. We planned the closing. About a week into the closing, we got a telephone call from a new negotiator that introduced themselves as the the new negotiator for this folder. She asked for a number of papers so that she could get the folder approved. When we told her that we previously had the folder approved, she let us know that that agreement was no longer valid because they never got the folder approved from the investor.

This is the type of things that is occuring out there that you will not here in a regular short sale training seminar. The point is that there are post approval problems and you are going to have to work with them if you desire to be successful in this industry

If you have questions, get your Short Sale questions answered by Short Sale Specialists.

Watch this and more short sale videos by Kevin and Fred at Short Sale Power Hour

Also, follow Group 46:10 on their blog at Phoenix - Foreclosure Short Sale Phoenix

Before the spring of 2009, there was no standard set of rules for loan modifications in the United States or in Phoenix, Arizona.
Each lender in Phoenix, AZ had its own rules as to how they wanted to handle loan modifications. In most situations, the loss mitigation through loan modification process heavily favored the banks. Their main concern was to find a way to recover the money that a home owner was behind in payments. Generally, the banks would either increase the monthly payment or extend the term of the payments so that those late payments would just be paid off at the end of a loan. Usually, when the loss mitigation through loan modification process called for increased payments, the foreclosure of a property was only delayed by a few months, because there was no way that they could make a higher payment.
A new program, announced in the spring of 2009 by the Obama administration has changed the loss mitigation through loan modification process. The guidelines for loss mitigation through loan modification have changed. This program mandated that mortgage payments be reduced to just thirty one percent of the home owner's income. For many Americans, this meant that they could once again afford to pay their mortgage payments. The loss mitigation through loan modification process, appeared to be a great helping hand.
However, the program only covers mortgages through Fannie Mae, Freddie Mac and the FHA, but it is widely thought that most other lenders will choose to follow the guidelines for loss mitigation through loan modification as laid out by the Obama Administration. The Making Home Affordable Modification Program has placed the focus right on loss mitigation through loan modification. Many in danger of losing their homes to foreclosure didn't even know what loan modification was.
Since the program's inception, there have been scores of people flooding into banks to request loss mitigation through loan modification. With all of these people facing the time crunch to avoid foreclosure, this has placed the burden of a national housing crisis squarely on the backs of the Loss Mitigation Department at your bank and every bank.
Before the housing crisis and the crash of the real estate market, foreclosures were not very common. Most lenders and mortgage providers kept a staff of just a few people to handle loss mitigation. Foreclosures were not very common and loan modifications were even less common.
However, the times have certainly changed. Banks and lenders have increased the size of their loss mitigation departments exponentially. This has meant thousands of people needed to be trained to work with loan modifications and all of the other tasks that fall to the loss mitigation department at a lending institution.
There are horror stories abound regarding customers having to hound and hassle Loss Mitigation Departments to get their paperwork pushed through to avoid foreclosure. Loss Mitigation Departments are currently still understaffed, under experienced, and overworked.
Read Part 2 of our Loss Mitigation Report to Find a Better Solution to avoiding foreclosure.