Home » Archive by category "Short Sale"
Find Homes For Sale. Search real estate, recently sold properties, foreclosures, new homes, maps, schools and more ... www.DanielAndradeHomes.com

Short Sales And Credit Scores – Short Sale Education

A couple of months ago, I wrote the blog “Bankruptcy, Foreclosure, or Short Sale? What happens to my Credit Score?” This month, I’d like to give an update on Short Sales and Credit Scores.

Credit Score:Drops score approximately 60-100 points
Length of Time on Credit Report:7 years
Buying Another Home: Qualify for a mortgage with a decent interest rate after 18-24 months

Note: There are several caveats when it comes to a short sale because short sales are relatively new and credit bureaus are still trying to figure it into their credit risk modeling. In fact, in the future, it has been analyzed that some lenders may look at a short sale the same as a foreclosure.

Above states an 60-100 point hit for a short sale and this hit does depend on how many payments were missed prior to the completion of a short sale

For a short sale, it has been reported that a credit report will show Satisfied with a note that states “Creditor settled for less than the amount due”. If you are lucky, you will just get “Paid In Full”. This does not happen often. Most likely, a short sale will show as a charge off or a settlement

Lenders using the Fannie Mae and Freddie Mac mortgage approval system will see mortgage payments that are 120 days late or receipt of a Notice of Default the same as a foreclosure

Many lenders may not consider a short sale unless the homeowner is late, but more are considering a short sale even if the homeowner is not late with a convincing and full proof of a hardship

Homeowners who have a mortgage under water are more inclined to try a short sale ”short sale” before throwing their hands in the air and going to foreclosure or go through bankruptcy. In 2009, the National Association of Realtors estimated that about ten percent of all sales last year were short sales and it is expected to increase this year.

With Obama’s HAFA program, lenders are provided incentives to perform short sales and so are homeowners because under this program they would receive $1500 for relocation costs.

There is still a lot of confusion around how a Short Sale Secrets will affect a borrower’s credit score. It really depends on how many lates a homeowner has had on their mortgage and how the lender decides to report it to credit agencies, Experian, Equifax, TransUnion.

The main point that homeowners should realize is that if they are successful on doing a short sale to get out of their situation, the road to credit recovery is shorter than if they went to foreclosure. Protecting ones credit score will help to minimize the amount of interest a borrower pays on credit cards an loans.

It has been reported that a homeowner would be able to buy a home after 2-3 years, given they continue to work on their credit after a short sale. If they went to foreclosure, they would have to wait as long as 7 years.

Many homeowner are frustrated on figuring out how to resolve their mortgage being underwater and many are just walking away but this is a mistake. A homeowner can ask for a short sale even if they are not late on their mortgage, but the reality is that a lender has no incentive to allow a short sale if payments are still being made on time.

There are some states that do not allow lenders of 1st mortgages to pursue a seller for the unpaid balance. But in all states, second liens and equity credit lines can pursue the seller unless an agreement has stated otherwise. Borrowers will have to pay tax of any unpaid mortgage balance unless they meet IRS’s home exclusion or insolvency rules. Owners of second or investment properties do not qualify for the home exclusion rules.

Look out for our future blogs/articles from our Short Sale Leadership Series content.To view our blog updates, visit www.whbsolutions.com/blog.

Article Source: http://www.articlesnatch.com

About the Author:
For more information on becoming a Short Sale Education Leader in your community, join WHB Solution’s community of Short Sale Success and join short sale experts at www.whbsolutions.com/members

Funding And Closing A Short Sale

The Trustee is the owner of the property, not the Trust itself.
The Beneficiary has the power to direct the Trustee to deal with the title and proceeds of the property. They also have the right to manage, possess, use, control, sell, rent or mortgage the property. The beneficiary has an economic interest in the property.
When a homeowner puts a property into a land trust they convey fee simple absolute ownership to the Trustee. The land trust will state that legal and equitable title is vested soley in the Trustee with the homeowner named as the beneficiary.
The beneficiary can direct the Trustee to manage the property. Any liens remain in place but do not get paid off at this time. The land trust protects the property from other creditors by making sure no more liens are placed; this is good information for the short sale lender to know.
The homeowner will also sign a purchase agreement with the investors company as the buyer. The trustee is not named as the buyer. Once the trustee owns the property, a purchase agreement can be signed with the Trustee as Seller. Once the contract is accepted, the buyers lender will order a title search and find that the Trustee is the owner of the property and has the right to sell. This is the part of the process that typically stops the transaction. It all boils down to how the underwriter interprets the FHA guidelines.
Lenders (notably FHA and nonconforming) instituted an underwriting requirement that title must be seasoned for varying lengths of time (3 months etc). The rationale is based upon an observation that where properties were sold multiple times, within a short period of time, the loans had a higher default rate and tended to have artificially inflated appraisals and various other forms of loan fraud. Thus, the seasoning requirement was born. Note the key term “sold”, not transferred. The transfer of the property from the Seller to the Trustee is without consideration and constitutes a mere change of identity and therefore, does not reset the title seasoning clock.
Transferring the ownership of the Land Trust is akin to a corporation selling its shares to someone else, while selling some property that it holds title to – it has no bearing on the transaction contemplated between the Trust itself and the bona fide purchaser for value. Nor is there any reason why a personal transaction, that does not affect title to the premises, would be presented to the purchaser’s Lender. Again, it is the Trustee who holds legal and equitable title and is empowered to convey the premises not the beneficiaries who merely have a beneficial interest in the land trust – personally not realty. New York State, for instance, considered such interest to be an economic interest in real property thereby creating a blend of the two interests – a quasi real estate interest that does not rise to a fee simple interest – so that it may collect transfer taxes upon the transfer of such interest.
Once financing is in place, a qualified real estate attorney can help you proceed to purchase the beneficial interest in the property. Beneficiaries have economic interest in real property; therefore, transfer tax returns must be filed and transfer taxes paid when the interest is transferred to a new beneficiary.
This type of closing should always be performed by a real estate attorney who is familiar with land trusts. He will prepare the HUD-1 as if you were purchasing the property; the short sale lender is paid off at this time. The land trust stays in place; the trustee remains the same. Now the property can be sold to an end buyer with no problems.
The process can vary slightly from state to state and should only be done with a qualified real estate attorney who is familiar with the process. Proper structure with attention to the treatment of the beneficial ownership of the land trust is critical.
Due to the increase in real estate fraud and scams, many states have enacted stringent legislation concerning distressed assets. A qualified real estate attorney who has experience with short sales and land trusts will know what you can and cannot do concerning pre-foreclosed homes.
Jodi Funke is the founder of http://www.cashforshortsales.com a company who specializes in short sale transactions. Jodi is a transactional lender who provides funding for the investor to purchase a property on a short sale and sell the property for a profit the same day. Their team of real estate professionals, attorneys and title companies are experienced at handling these transactions while working at the highest level of integrity.

Article Source: http://www.articlesnatch.com

About the Author:
Jodi Funke is a transactional lender who understands this dilemma. “Lack of funds is the number one reason most real estate investors cannot close a short sale deal,” said Jodi. “We provide one-day funding for the investor to buy the property and our nationwide team of closing professionals, attorneys and title companies are experienced in doing back-to-back transactions so the investor can fund the deal and resell the property the same day. It”‘s a win-win deal for all parties involved.” Learn more about wholesale funding at http://www.cashforshortsales.com

Read more: http://www.articlesnatch.com/Article/Funding-And-Closing-A-Short-Sale-/747172#ixzz1hJXXUSXX
Under Creative Commons License: Attribution No Derivatives

Understanding California Short Sale Rules

We are hearing more and more about the realities of short sales. Making the latest headlines are the concerns addressing the changing California short sale rules. Short sales options by California property owners represent about twenty percent of that regions housing inventory.

In general, a short sale is when a property owner has fallen several months behind in their payments on that property, and there is a new agreement made between the lender and that property owner, to settle the property for less than is owed. The remaining balance is pardoned by the lender, so that both parties can move forward from this irreconcilable relationship. But is it a true move forward?

Click Me! To Find Out Everything
You Need to Know About
Foreclosures and Short Sales

California short sale rules implies that the seller will still be ultimately responsible for the difference left between the money owed on the property and the new purchase price agreed to the new owner. This will still remain a problem for the original owner, after suffering through the lengthy, stomach wrenching ordeal, of the entire process.

The California Association of Realtors are franticly warning realtors that California property owners may be in danger of severe tax consequences if they decide to chose short sale over foreclosure, even if the lender agrees to allow the short sale to proceed after several road blocks, and so forth. The lender can still be instrumental in pursuing judgment against the previous property owner.

While the California short sale rules are still not clear, the possibility for government involvement to pursue wage garnishments for property owners believing that a short sale was their way of putting a bad experience behind them is very real. It is till being debated and reviewed in congress, but a solid decision is not coming fast enough.

Some say that it may be smarter to take the credit hit now and let the foreclosure happen versus try and save those few credit points, and still be subject to the ultimate financial ruin anyway. Either way, there will be some credit damage. Your final decision must be something that you are willing to live with long term. No easy solution, but there is a way to make the best choice for your particular situation.

For Californians, there are several non profit foreclosure counseling organizations, as well as some reliable real estate lawyers available that can help interpret the current California short sale rules for you and help you decide the best course of action to take. Be sure to make a check list. Strategy and planning will also aid you in being able to live with your final decision.

When reviewing the California short sale rules with your counselor, ask if it there is a possibility of owing the California Tax Board as well, as the IRS. You may want to bring up capital gains as well as if there are other work out plans in addition to the ones you may have to create a hybrid plan, and if so what are the long term effects on your credit?

Article Source: http://www.articlesnatch.com

About the Author:
California Short Sale Rules…what rules? Visit http://www.nphsrealestate.org/Short-sale/California now, to get all the rules and facts on Short Sales in your area.

10 Steps To A Successful Short Sale

The process consists of a series of steps that must be followed to the letter. Since the short sale process is time-consuming, having an owner who understands the long-term benefits of a short sale and is committed to work with the broker to complete the transaction is crucial.

The biggest keys to a successful sale are having a complete and compelling package and consistently following up with the bank’s negotiator. If the broker knows key contacts within the bank, he can escalate short sale process requests beyond ground level negotiators. (In short sales, who you know is often times more important than what you know.)

What are the steps to a successful short sale transaction?

Here is a summary of the process along with approximate timelines for each task:

1) Financial information provided by homeowner to establish hardship – 3-7 days
2) List the home and get letter of authorization – 1 day
3) Market the home and get qualified offers – 30-60 days
4) Package all financial information per bank requirements – 2-3 days
5) Submit package to bank and confirm receipt – 2-4 days
6) Negotiator assigned to the file – 1-3 weeks
7) Appraisal / BPO ordered – 2-3 weeks
8) Bank responds with their terms and conditions – 2-3 weeks
9) All parties negotiate terms and conditions – 2-3 weeks
10) Escrow is opened and transaction closes – 4-5 weeks

These steps add about three to four months to the transaction, not counting the time it takes for the escrow to close.

Creating a Compelling Short Sale Package

The first step in the short sale process is to document a hardship with a compelling package. Before placing the home for sale, the broker will take time to properly prepare and document the hardship that the bank will review once the package is submitted.

With the hardship package complete, the broker will now establish a competitive market price for the home. Although the broker may suggest the price to list the home for sale at, the bank will ultimately decide based on market data what value they will agree to sell the home for.

The goal during the marketing period of the process is to generate serious qualified buyers who will stay with the transaction through the negotiation. Generating multiple offers will also show the bank that the seller has done everything possible to get them the best possible price for the home.

Once the buyer offers have been reviewed and all buyers have been properly pre-qualified, the broker must prepare the full package that will be submitted to the bank. This part of the process is critical because if the paperwork submitted is incomplete or incorrect, the bank will typically place the package in an “incomplete bin”, otherwise known as the trash. Sending the bank only the information they need, and not more, is an important part of the process.

Maintaining Consistent Follow Up with the Bank

With the paperwork now submitted to the bank, typically via e-mail or fax, the broker will follow up to confirm the short sale package has been received and imaged into their system. This is a key step in the process that can save a lot of time.

Once the bank has input the documents into their system, a negotiator will be assigned to this file. Again, a good short sale broker will follow up within days of submitting the documents to confirm all needed paperwork was received and to receive contact information on who they’ll be negotiating with at the bank.

The next step in the short sale process is confirming that the BPO or appraisal has been ordered. It is important to run a report of the comparable sales for the person doing the valuation. Giving them a list of repairs along with the projected costs to repair will facilitate an accurate evaluation while assuring the transaction moves to the approval phase sooner.

Awaiting the Bank’s Decision

The bank will review the documents along with the appraisal and determine the value they will agree to sell the home for. Their response may or may not be reasonable, and it’s important to understand the bank’s response is just that, a response. This may be the start of negotiations that will iron out the price and conditions included in the bank’s approval. This is perhaps the most critical skill that the broker needs to have, since the bank is only after one thing: Money.

When all the details have been negotiated and agreed to by the bank, seller, and buyer, the sale process can now move forward and open escrow. During the escrow period, the buyer will do a full home inspection and work with their lender to obtain a loan on the home. We are now seeing light at the end of the tunnel.

Closing the sale

One the buyer’s loan is fully approved, a final closing estimate is prepared for the bank to confirm that all the terms have been met and escrow has authorization to close the transaction.

This process takes a minimum of three months in addition to the time it takes escrow to close. By carefully preparing the homeowner’s case for the bank and doggedly pursuing the sale through the system, the broker increases the likelihood he can plant a “SOLD” sign in the seller’s front yard.

Please look for future articles soon, as we unpack each of the ten steps and give you key information you’ll need for a successful short sale.

Article Source: http://www.articlesnatch.com

About the Author:
Visit our website at http://EZShortSaleProcess.com and get 10 free videos outlining the 10 key steps to a successful short sale.

Read more: http://www.articlesnatch.com/Article/The-Short-Sale-Process—10-Steps-To-A-Successful-Short-Sale/2216605#ixzz1NNVKSvbM
Under Creative Commons License: Attribution No Derivatives

Short Sales Predictions?

Will we see an increase or decrease in Short Sale Activity in 2011?
It’s been a bumpy ride for short sales investors since 2008. Over the last two years a lot of banks have been less than eager to approve short sales, instead drawing out the process for long periods of time and ultimately halting short sales completely for a while at the end of 2010 because of the robo-signing debacle. So is there light at the end of the tunnel for short sale investors?

Short Sale Predictions

While I have continued to operate my short sales business successfully through this mess, I must say that it has become more difficult for a short sale to get approved by the bank, so it’s taken working on more deals to create the same income (luckily for investors, there are a lot of short sale deals out there). If the short sale predictions for 2011 that are reported in the news are correct we should see a significant increase in short sales a fewer foreclosures during 2011. One report released today explains it like this:

“According to global ratings agency Fitch Inc. and Managing Director Diane Pendley industry experts are expecting to witness more short sales and fewer foreclosures in 2011, an encouraging sign for homeowners in the D.C. Metro, northern Virginia and Maryland regions as well as those seeking alternatives to foreclosure. A short sale, or a sale in which a property is sold for less than what is owed on the mortgage, can be an effective alternative to foreclosure while allowing homeowners to escape the burden of bankruptcy. The Tania Ivey Real Estate Group, which services Northern Virginia, Maryland and Washington, D.C., offers a number of Certified Distressed Property Experts (CDPE) to advise clients in the short sale process. Home sellers in specific areas such as Fairfax County VA, or Loudoun County VA are seeing the number of Short sales increase. If you are a homeowner in Leesburg VA or Ashburn VA trying to sell your house you are competing with numerous Short Sales. Even areas such as Great Falls VA and Vienna VA are seeing a major part of the market being short sold.”
Read more: benzinga.com/press-releases/11/01/p784762/real-estate-short-sale-to-increase-in-2011-as-banks-attempt-to-dispose-#ixzz1BPPrqizR

Ultimately, the banks will be the ones that decide if they are ready to play ball in 2011. There will be no shortage of delinquent mortgages any time soon, and so it comes down to foreclosure or short sale for the banks. For both investors and homeowners alike, let’s hope the banks choose to start short selling more properties again.

Article Source: http://www.articlesnatch.com

About the Author:
Phill Grove has conducted approximately $200M in real estate transactions – using non-traditional investing methods such as mortgage assignment, short sales, equity partnering, auction-options, wraps, swaps, and other methods – many of which he invented and/or pioneered for the industry. Phill has invented a new strategy called the Mortgage Assignment Profits System. Phill Grove has personally trained and coached hundreds of Real Estate Investors on the “12 Ways to Buy and Sell Real Estate”, as well as marketing and lead processing strategies that actually work. Find out more about Phill at http://www.REIMaverick.com

Good News For Homeowner Short Sales

The Home Affordable Foreclosure Alternative Program (HAFA) has not met up to its expectations with regard to providing a viable alternative to a full blown foreclosure for distressed homeowners wanting to sell properties that are underwater rather than have a foreclosure on their record.

The HAFA program’s intent from the inception was intended to allow a homeowner facing foreclosure to short sale the property and also provide the possibility of a stipend of money for relocation purposes, once the is was complete. It also provides for monetary incentives for the servicers to administer the program to help facilitate short sales.

Unfortunately, the program also created loopholes for servicers to take advantage of the guidelines to make them work primarily in favor of the the servicer, representing the investor, to the disadvantage of the homeower. Some of the loop holes in the orginal HAFA program that made for sometimes insurmountable obstacles are:

(a) the inordinate amount of time it takes for servicers to respond to a borrower when electing to short sale a property and the fact that approval or disapproval of short sales, commonly take 90 or more days. During this time, most buyers who have made an offer on the property are discouraged and lose interest and move on. Thus, the homeowner loses the short sale opportunity. This results in the homeowner often needlessly being forced in to foreclosure and thus defeating the intent and purpose of the HAFA program.

(b) HAFA presently has no guidelines addressing the practice of servicers to completely ignore the underlying property listing agreement between the homeowner as seller and the prospective buyer of the property. Servicers more often than not unilaterally dictate the amount of commission that will be paid to the listing real estate broker. Most listing contracts have a six percent (6%) commission set for payment to the listing real estate broker.

This commission is the thing that motivates the real estate broker to list the property and work very hard to accomplish a sale on a very difficult property. Arbitrarily reducing the commission by servicers because they must approve the sale, often occurs and this knowledge has discouraged the real estate industry from embracing the concept of short sales and thus affects the entire real estate industry in a significant way.

The two obstacles described above account for a significant failure of short sales that otherwise could be successful and benefit the servicer, the homeowner and the real estate industry, which desperately is trying to right itself.

Finally there are new HAFA guidelines proposed that will take place effective February 1, 2011 that removes the obstacles described above along with several others. Here are some of the most important changes that will become effective:

1. No more need to verify income. Only a hardship letter or request for modification via short sale is required.

2. The property being short sold can be vacant or rented out up to 12 months prior to requesting the short sale without regard to whether the borrower has lived in the property so long as it was the borrower’s principle place of residence within last 12 months.

3. Servicers are no longer limited to the 6% cap on extinguishing second, third or other subordinated loans during the short sale process.

4. Servicers are required to respond within 30 days to a borrower’s request for a short sale. Servicers are required to approve or disapprove an offer submitted by a buyer of the property within 30 days of receipt or alternatively to respond with a counteroffer within that 30 day period of time.

5. Servicers must honor the amount of commissions agreed to be paid to the listing real estate broker up to six percent (6%) if that is what is agreed to between the listing broker and the borrower. No offset is allowed by the servicer. This is huge toward getting the real estate sales industry to engage more actively in short sales.

While one should be optimistic and excited about these new guidelines, the reality is that many of the servicers will not take heed and will continue their ways in ignoring rules and regulations. Therefore, it will be necessary for all parties involved in these short sales to be diligent and hold the servicer’s feet to the fire. The difference this time around is that the regulations specifically include language like “the servicer “must” or “shall” follow specific guidelines.These terms “must” and “shall”, although small, make all the difference. The effect is that the guidelines now have muscle that the courts will ultimately enforce under federal regulations and this message is now loud and clear to the servicers.

Real estate brokers, homeowners and others who understand the power of this new “language” change and who let the servicers know that they know the significance will meet with substantial success in the future. Homeowners and persons representing them should keep a copy of the Supplemental HAFA regulations handy when communicating with lender servicer negotiators.

Article Source: http://www.articlesnatch.com

About the Author:
Roy Landers is a California attorney/real estate broker with over 25 years experience in real estate matters.He maintains two real estate blogs at http://www.therealestateinstitute.net, a real estate education site and http://www.renegadeforeclosurefighter.A FREE Newsletter-The Real Estate Playbook is also available at these sites.

Short Sale Vs Foreclosure Means Weighing All The Options

Mortgagees behind on their monthly house payment have the difficult decision of short sale vs foreclosure. There are pros and cons of either option, but the final determination is based on the amount of time and work to be spent.

A judicial foreclosure lowers one’s credit score up to four hundred points and remains on the credit reports for seven to ten years. The lending institution sues the borrower in court. If the amount due cannot be repaid, the court allows the bank to continue the process.

An auction date is scheduled and posted in the newspaper and on signs that the sheriff’s department has placed on the home. The lending institution pays for insurance coverage during the process. The borrower can save the home by paying the amount due up to the morning of the public auction. Otherwise, the home and property are sold to a person with the highest bid. The financial institution will write off the remainder of the debt or sue the former mortgagee.

Another alternative is deed in lieu in which the resident signs ownership of the home to a loan holder as payment. The property is then auctioned to whoever bids the highest. This is a feasible option for those who cannot afford workout payments or cannot find a buyer. This option is less costly for the bank since routine court fees are not needed. The mortgagee’s obligation is considered paid in full, but their credit score can be affected just as negatively as a foreclosure unless the account is reported as paid and settled.

Both first and second mortgages can be wiped away with a short sale by selling the property at a reduced price approved by financial institutions. This alternative reduces one’s credit score by only up to two hundred points, and stays on the credit report for up to seven years. Previous borrowers may be approved for another loan at another institution as quick as one year later.

The institution is informed by borrowers of the intent to sell in this method. The lending institution works closely with the realtor chosen by the homeowner who is experienced in this method. The home is listed at a reduced price which is bank approved. Once the homeowner accepts a bid by a potential buyer, the necessary paperwork is given to the facility. Any disapprovals are dealt with including bid changes and resubmitted. After approval, the selling process continues to the title company for completion.

This alternative permits the borrower to be involved in all decisions from choosing the realtor and their involvement to picking the winning bid to be submitted. Although the only person benefiting from any profits is the realtor, the seller does not pay any costs that he would normally be responsible for.

When deciding short sale vs foreclosure, those in debt desiring to stay in charge of their outcome should decide on the former alternative. Like standard house selling, they have the final say in who to sell their home to. Although they gain no profit, their profit is knowing they made the choice of who their beloved home was given.

Article Source: http://www.articlesnatch.com

About the Author:
So what is a short sale and how does it work you ask? You can learn more on short sale today.. Free reprint available from: Short Sale Vs Foreclosure Means Weighing All The Options.

Read more: http://www.articlesnatch.com/Article/Short-Sale-Vs-Foreclosure-Means-Weighing-All-The-Options/2329180#ixzz1NNWR5E8f
Under Creative Commons License: Attribution No Derivatives

Short Sale Law To Help Eliminate Foreclosures Inevitably

The Short Sale Law in California is helping a lot of people. The law is giving people the opportunity to keep their homes and not have to suffer foreclosure. Many people are a tad bit confused on how this law can benefit them, and cause these excellent results. It helps to gain a better understanding of what the law truly is.The Short sale law in California is a law that was enforced to help during the economic recession. Many people are struggling during these hard times; unemployment seems to be consistently rising, as well as expenses for pertinent things that we stand in need of. A few things that seem to be consistently rising in price are food, and gasoline.

People ultimately need food in order to survive, and they need gasoline as a means to get them to and from their place of employment. With the recession in full swing and prices for necessities at an all time high, people were losing their homes left and right.

The short sale law allows people the opportunity to negotiate a price that they can afford to pay on their mortgage. Everyone knows that a big chunk of mortgage payments are simply going towards excess fees and finance charges, they are not being applied to the overall home that you are trying to buy.

You can seek help from a specialist that knows a thing or two about short sales to assist you with the process. What you basically need to do, is sit down with your mortgage lender, and let them know your current financial obligations are exceedingly too much to continue paying the large amount on your mortgage every month.

Many companies are hesitant at first to apply with your demands, but the fact of the matter is Short sales take up a lot less time then a foreclosure would, and they are seen less expensive. Mortgage companies lose out on a lot when a home goes up for foreclosure. Most of the funds will never be returned.

So, when the company and you reach an agreement that suits the both of you, this is a turning point in your current financial arrangement. The amount that is taken off of your home does not need to be repaid. However, since such a substantial amount was removed in order to assist you with the burdens of life. You will be required to file the amount that was taken off of your mortgage as taxable income.

You will receive a 1099 form at the end of the year, you are to record the exact amount that was taken off of your mortgage during the short sale. You will still be held responsible for paying taxes on that amount, so the smart thing to do, is save up as much money as you can throughout the year to be able to pay your taxes on the amount.

You don’t want to be blessed with being able to do a Short Sale, just to wind up in a different boat with the IRS because you can’t pay the taxes on the amount due.

Article Source: http://www.articlesnatch.com

About the Author:
Short Sale Law in California, helping you gain advantage before foreclosure comes knocking at your door. Have a quick peek at http://www.nphsrealestate.org/short-sale/law-tax before you make up your mind.

Bank Of America Announces Shorter Short Sales!

BofA Reduces Short Sale Approvals To 2 Weeks  
I’ll believe it when I see it. Bank of America has been notorious in the past for long, drawn out short sales, but in an ‘exclusive’ webinar this week with BofA top brass the announcement of new policies and procedures to expedite short sale approvals was announced.

“We have some GREAT news for those of you that have your mortgage with Bank of America. I just attended an “exclusive” LIVE webinar with Kimberly Dawson, a Vice President at BofA that oversees their short sale operations. BofA holds almost 25% of the mortgage market and processed almost 100,000 short sales in 2010. They are estimating exceeding that in 2011…….They will close approximately 10,000 short sales per month.

Click Me! To Find Out Everything
You Need to Know About
Foreclosures and Short Sales

How Bank of American is changing their short sales process

BofA is “pre-approving” short sales before they are even listed on the MLS. This is much different from the “normal” short sale where we list the home, get a contract, gather all the paperwork, submit to the lender, and then WAIT. BofA is calling this a ‘Cooperative Short Sale.'”

In addition to the ‘pre-approving’ of short sales, Bank of America will also be utilizing a new internet software that will assist with document management and ultimately streamlining the entire process for the bank and short sale processors.

Bank of America’s program to help automate the short sale process

“BofA has also implemented a new web-based short sale tool called Equator (www.Equator.com). It is a transaction mgmt system that has GREATLY increased the speed and efficiency of the short sale process. We are very experienced in using the tool and we love it! It has made my life much easier. We used to fax documents to BofA and they would get lost….multiple times! It was a nightmare. No more.”

Ayers, Rich. “BofA is reducing short sale approval to approx 2 weeks!” The Ayers Team. January 21, 2011 (accessed January 22, 2011).

Our personal experience with Equator is much less impressive then the article states. Our office handles a lot of short sale transactions and we have seen short sale paper work lost and sometimes Equator feels like a short sale purgatory. It would be great to see Bank of America get their short sale process time frame down considerably. The article also states that the typical BofA short sale time line from open to close is between 1 and 4 months. From our short sale experience, this could not be farther from the truth. Rarely do we see BofA approve a short sale in under 4 months, though we have had some quick BofA short sale closes, most of BofA’s short sales take much longer then 4 months to complete.

Overall, it is good that BofA is changing their short sale process, this part is long over due. Our major question with this new policy change is this…did BofA improve their short sale process because of internal mandates or pending legislation from investors and property owners?

Visit REI Maverick on the web for more short sales and real estate investing information

Article Source: http://www.articlesnatch.com

About the Author:
REI Maverick Phill Grove has been called the most successful residential real estate investor in post-bubble America by dozens of today’s top guru’s. He has conducted approximately $200M in real estate transactions – using non-traditional investing methods such as mortgage assignment, short sales, equity partnering, auction-options, wraps, swaps, and other methods – many of which he invented and/or pioneered for the industry. As the Founder and President of Love American Homes, as well as the creator of the Mortgage Assignment Profits System. Phill Grove has personally trained and coached hundreds of Real Estate Investors on the “12 Ways to Buy and Sell Real Estate”, as well as marketing and lead processing

Gorgeous 3 Bedroom Whitter Short Sale Home listed for $150,000

I get asked this many times so here it is. The problem is short sales are not being listed for the price that they will end up selling for. If it’s too good to be true, it’s too good to be true

The bank has appraisers that figure out what the property is worth and the bank wont take less than that market value. If the price is too low the bank will give us a counter offer for full market value or they can just foreclose and sell it themselves at full value. They may consider a 10% discount for a short sale property in very bad shape (cash offers) but not 50% off

Many banks are now starting to send short sales through auction companies. The auction company takes your highest offer from the MLS as the starting bid, then they let bidders raise the price and charges an extra $15,000 fee for the auction company. These will probably sell at auction for $350,000 plus the $15,000 auction fee

What you are looking at is the auction starting price. They will get 20 offer the first day from people that didn’t see it and 50 offers by the end of the week. We can submit a bid or I can help you find a real home that you can move into. Call me to help you find your new home

Find Homes For Sale. Search real estate, recently sold properties, foreclosures, new homes, maps, schools and more ... www.DanielAndradeHomes.com

This site is protected by Comment SPAM Wiper. Find Homes For Sale. Search real estate, recently sold properties, foreclosures, new homes, maps, schools and more ...

Click for Privacy Policy

Daniel Andrade, REALTOR® DRE #: 01849983
Century 21 My Real Estate Co
7825 Florence Avenue, Downey , CA 90240
call today 323-215-9836

Each Office is Independently Owned and Operated © 2012 Century 21 Real Estate Corporation. CENTURY 21® is a registered trademark owned by Century 21 Real Estate LLC. An Equal Opportunity Company. Equal housing Opportunity. Each office is independently owned and operated. Copyright © %current-year% %home% - All Rights Reserved