Short Sale in Riverside and Corona | Bank of America offers up to $30,000 for short sales

Short Sale in Riverside and Corona  | Bank of America offers up to $30,000 for short sales

Bank of America (BOA) is offering some struggling homeowners payments of up to $30,000 if they sell their homes in a short sale and avoid ending up in foreclosure.  Under the plan, Bank of America will offer homeowners so-called relocation payments of between $2,500 and $30,000 if they sell their home in a short sale. In short sale deals, the sale price of the home is less than what the seller owes the bank.  The bank first tested the payments in a pilot program in Florida last fall. Under that initiative, Bank of America paid up to $20,000 to borrowers who sold their homes in short sales.  Chase started a similar initiative in late 2010 that pays as much as $35,000 to short sellers. Wells Fargo has also paid five-figure incentives to short sellers or to owners who turned over their deeds to the bank.

Bank of America will offer homeowners so-called relocation payments of between $2,500 and $30,000 if they sell their home in a short sale

BOA said it has completed 200,000 short sales over the past two years. These sales are generally more cost effective for banks than foreclosures. By avoiding foreclosure, the lenders get distressed properties back from delinquent borrowers more quickly, which helps them to avoid property tax payments, maintenance expenses and legal fees that can build up for months, even years, as foreclosures work through the system.

In addition, the incentives help guarantee the homes will return to the lenders in better condition. Foreclosed properties are often poorly maintained, even sometimes sabotaged, by angry former owners, making them worth far less to the banks.  During the last three months of 2011, foreclosures sold for an average of about $150,000, according to RealtyTrac. Meanwhile, short sales sold for an average of about $185,000.  To qualify for Bank of America’s relocation payments, borrowers must obtain pre-approval on sale prices for their homes. The sale must begin by the end of 2012 and close by September 26, 2013.  The exact compensation is determined case-by-case based on a calculation that involves the home’s value, mortgage balance and other factors.  Borrowers can call 877-459-2852 to find out if they may be eligible for the program.

What is a Short Sale?

A Short Sale happens when proceeds from the sale of a home do not fully pay off the existing loan(s) and the bank accepts a discounted payoff to fully satisfy the loan. The existing lender usually pays all sales costs, including commissions, escrow and title fees from the sale’s proceeds. The home owner gets the home sold and avoid foreclosure, plus the loans are paid off. A short sale may or may not involve a property in foreclosure.

 

I can help you short sale your upside down property in Riverside, Corona, Murrieta, etc . Please contact me at  951-324-6874 or click here to email me.

Click here to find out more about me.

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Real Estate Short Sale in Riverside and Corona CA

 

Short Sale in Riverside and Corona  | Bank of America offers up to $30,000 for short sales

2012
05/16
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Short Sale in Riverside | HAFA short sale eligibility requirements for Citi Mortgage

Short Sale in Riverside | HAFA short sale eligibility requirements for Citi Mortgage

All servicers that have signed agreements with the U.S. Department of the Treasury (Treasury) to participate in the Home Affordable Modification Program (HAMP) must consider eligible borrowers who do not qualify for HAMP for other foreclosure prevention options including Home Affordable Foreclosure Alternatives (HAFA) which includes short sale and deed‐in‐lieu (DIL). However, each servicer has some discretion in determining additional eligibility criteria and certain program rules. In order to assist borrowers and their representatives in understanding any unique components of a servicer’s HAFA Policy, Treasury, has developed this HAFA Matrix. The summary information in this matrix is prepared solely by CitiMortgage (CMI) and does not represent any determination by the Treasury as to the servicer’s compliance with the Treasury’s policies and guidance for HAFA. Treasury does not endorse any language or policy described in this matrix. Any questions regarding the information contained in this matrix should be directed solely to CitiMortgage

 

HAFA short sale eligibility requirements

  • The loan must be owned by CitiMortgage or by a private investor (i.e. a Non‐GSE Loan).
  • The mortgage loan is a first lien mortgage originated on or before January 1, 2009.
  • The mortgage is delinquent (> 60 days past due) or default is reasonably foreseeable (imminent default). Loans currently in Foreclosure and Bankruptcy are eligible.
  • The current unpaid principal balance of the loan is equal to or less than:
    • 1 Unit ‐ $729,750
    • 2 Units ‐ $934,200
    • 3 Units ‐ $1,129,250
    • 4 Units ‐ $1,403,400

     

  • The borrower has documented a financial hardship, evidenced by a signed Hardship Affidavit or Request for Modification and Affidavit (RMA), in which the borrower has expressed that he or she does not have sufficient liquid assets to make the monthly mortgage payment.
  • Foreclosure Sale Date:
    Loans in foreclosure that have a sale date set which is < 60 days from the date that the borrower requests consideration for HAFA are ineligible. In addition, once a foreclosure sale has occurred the loan is no longer eligible.
  • CitiMortgage will first evaluate the borrower for a HAMP modification prior to any consideration being given to HAFA options. Borrowers that meet the eligibility criteria for HAMP but who are not offered a Trial Period Plan, do not successfully complete a Trial Period Plan, or default on a HAMP modification will first be considered for the other loan modification or retention programs offered by CitiMortgage prior to being evaluated for HAFA.
  • The property is currently or was recently the borrower’s principal residence:
    HAFA allows for vacancy of the property for up to 12 months prior to the date of the agreement, if the borrower provides documentation that it was their principal residence prior to relocation and there is no evidence indicating that the borrower has purchased a one‐ to four‐unit property within 12 months prior to the date of the Short Sale Agreement (SSA), Alternative Request for Approval of a Short Sale (RASS) or DIL Agreement.
  • The property securing the mortgage loan is not condemned.
  • Subordinate Liens:
    • It is the responsibility of the borrower to deliver clear marketable title to the purchaser or investor and to work with the listing broker, settlement agent and/or lien holders to clear title impediments. CitiMortgage is permitted to negotiate with subordinate lien holders on behalf of the borrower.
    • On behalf of the investor, CitiMortgage will authorize the settlement agent to allow up to an aggregate of $6,000 of the gross sale proceeds as payment(s) to subordinate lien holder(s) in exchange for a lien release and full release of borrower liability. Each subordinate mortgage lien holder (where the lien is secured by a mortgage on the subject property), in order of priority, will be paid six percent (6%) of the unpaid principal balance of their loan, until the $6,000 aggregate cap is reached. Such cap does not apply to non‐mortgage subordinate lien holders (e.g. mechanic’s liens, liens associated with assessments owed to homeowner’s associations, etc).

     

  • Mortgage Insurance:
    For loans that have mortgage insurance coverage, the transaction must comply with CitiMortgage’s agreement with the mortgage insurer; otherwise, CitiMortgage must submit the transaction to the mortgage insurer and obtain approval for HAFA foreclosure alternatives. A mortgage loan does not qualify for HAFA unless the mortgage insurer waives any right to collect additional sums (cash contribution or a promissory note) from the borrower.
  • Private Investors:
    Each private investor makes a decision as to whether or not they will participate in HAFA. When CitiMortgage recommends a HAFA short sale on a loan serviced on behalf of a private investor, we seek such investor’s approval on a case by case basis.
  • During the term of the SSA, CMI may terminate the SSA before its expiration due to any of the following events:
    • The borrower’s financial situation improves significantly, the borrower qualifies for a modification, or the borrower brings the account current or pays the mortgage in full.
    • The borrower or the listing broker fails to act in good faith in listing, marketing and/or closing the sale, or otherwise fails to abide by the terms of the SSA.
    • A significant change occurs to the property condition and/or value.
    • There is evidence of fraud or misrepresentation.
    • The borrower files for bankruptcy and the Bankruptcy Court declines to approve the SSA.
    • Litigation is initiated or threatened that could affect title to the property or interfere with a valid conveyance.
    • The borrower fails to make the monthly payment stipulated in the SSA, if applicable.

     

 

I can help you short sale your upside down property in Riverside for free. Please contact me at 951-324-6874 or click here to email me.

Click here to find out more about me.

Click here to look me up on Google. Ron Dadras, Certified HAFA Short sale specialist

HAFA Short Sale in Riverside County CA

 

Short Sale in Riverside | HAFA short sale eligibility requirements for Citi Mortgage

2012
05/15
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Modified loans defaulting

Modified loans defaulting

Administration-insured home loans entering foreclosure jumped in March after half the mortgages it modified to ease repayment terms were in default again a year or more later. The FHA’s role in lending to first-time buyers with poor credit and limited cash expanded after the 2008 collapse of the mortgage market put it at the center of government efforts to revive housing. The FHA allows down payments as low as 3.5 percent for borrowers with a credit score of 580, below the 640 defined as subprime by the Federal Reserve. n increase in FHA foreclosures may lead to further demands for stricter standards that could shut buyers out of the real estate market as it shows signs of stabilizing after a six-year slump. Mark Calabria, director of financial regulation studies at the Cato Institute in Washington, in a February report called for Congress to tighten the agency’s lending qualifications to protect taxpayers, who insure the loans. First-time homebuyers accounted for 33 percent of real estate sales in March, according to the National Association of Realtors.

Federal Housing Modified loans defaulting

Borrowers with mortgages for homes bought in 2010, the FHA’s peak lending year, now owe almost 7 percent more than their homes are worth if they used the minimum down payment, according to S&P/Case-Shiller home price index data. That year, the agency insured 1.1 million loans to purchase single-family homes, more than four times the total of 261,165 in 2007. Lenders initiated foreclosures on 36,400 FHA-backed mortgages, twice the number in April 2011, according to Lender Processing Services. The increase for Fannie Mae and Freddie Mac loans was 13 percent, the Jacksonville, Florida-based mortgage- data company said. A Treasury Department study of modified government- guaranteed mortgages in the fourth quarter found that 49 percent were delinquent again after 12 months. The Treasury report analyzed a group of loans that was 80 percent FHA, 15 percent Veterans Administration mortgages and 5 percent Department of Agriculture rural home loans. The rate for Fannie Mae and Freddie Mac was 27 percent. The share of government-guaranteed loans being paid on time dropped to 84.2 percent in the fourth quarter from 85.2 percent in the prior three months, the Treasury’s Office of the Comptroller of the Currency said in its March 28 report. It was the third consecutive quarterly decline. The U.S. housing market is showing signs of having hit a bottom after prices fell 35 percent since peaking in 2006. Values in 20 U.S. cities fell 3.5 percent in February, the smallest 12-month drop since February 2011, the S&P/Case-Shiller index showed last month. New homes sold at an annual pace of 328,000 in March, up 7.5 percent from a year earlier, the Commerce Department said.

I can help you short sale your property in Riverside County for FREE!

Please contact me at 951-324-6874 or click here.

 

2012
05/11
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California has highest number of completed foreclosures

California has highest number of completed foreclosures

CoreLogic today released its National Foreclosure Report for March, which provides monthly data on completed foreclosures, foreclosure inventory and 90+ day delinquency rates. There were 69,000 completed foreclosures in March 2012 compared to 85,000 in March 2011 and 66,000* in February 2012. Through the first quarter of 2012, there were 198,000 completed foreclosures compared to 232,000 through the first quarter of 2011. Since the start of the financial crisis in September 2008, there have been approximately 3.5 million completed foreclosures.

Approximately 1.4 million homes, or 3.4% of all homes with a mortgage, were in the national foreclosure inventory as of March 2012 compared to 1.5 million, or 3.5%, in March 2011 and 1.4 million, or 3.4%, in February 2012. The number of loans in the foreclosure inventory decreased by nearly 100,000, or 6.0%, in March 2012 compared to March 2011.

The share of borrowers nationally that were more than 90 days late on their mortgage payment, including homes in foreclosure and real estate owned (REO) assets, fell to 7.0% in March 2012 from 7.5% in March 2011, and remained unchanged from 7.0% in February 2012.  Also in March, the inventory of REO assets held by servicers nationwide grew more slowly than the pace of REO sales, as measured by the distressed clearing ratio.

The distressed clearing ratio is calculated by dividing the number of REO sales by the number of completed foreclosures. The higher the distressed clearing ratio, the faster the pace of REO sales relative to the pace of completed foreclosures.  The distressed clearing ratio for March 2012 was 0.81, up from 0.76 in February 2012.

 Foreclosure highlights as of March 2012

-  The five states with the largest number of completed foreclosures for the 12 months ending in March 2012 were:

California (150,000), Florida (92,000), Michigan (62,000), Arizona (58,000) and Texas (57,000). These five states account for 49.1% of all completed foreclosures nationally.

-  The% of homeowners nationally who were more than 90 days late on their mortgage payments, including homes in foreclosure and REO, was 7.0% for March 2012 compared to 7.5% for March 2011, and 7.0% in February 2012.

-  The five states with the highest foreclosure rates were:

Florida (12.1%), New Jersey (6.6%), Illinois (5.4%), Nevada (4.9%) and New York (4.9%).

-  The five states with the lowest foreclosure rates were:

Wyoming (0.7%), Alaska (0.8%), North Dakota (0.8%), Nebraska

(1.1%) and South Dakota (1.4%).

-  Of the top 100 markets, measured by Core Based Statistical Areas (CBSAs) population, 35 are showing an increase in the year-over-year foreclosure rate in March 2012, two more than in February 2012 when 33 of the top CBSAs were showing an increase in the year-over-year foreclosure rate.

*February data was revised.  Revisions are standard, and to ensure accuracy CoreLogic incorporates newly released data to provide updated results.

I can help you avoid foreclosure for FREE. Please contact me at 951-324-6874 or click here.

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California has highest number of completed foreclosures

2012
05/01
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Short Sale Day, June 15

Fannie Mae and Freddie Mac, the nation’s two largest mortgage backers, will implement their new short sale guidelines on June 15. The changes require mortgage servicers to make a decision within 30 days of receiving a short sale offer. They also must consider requests for pre-approved short sales within that same timeframe.  If the lender needs more than 30 days, it must give borrowers weekly status updates and a decision within 60 days of the initial application.

This extension gives lenders more time to determine the value of the property or to get the approval of a mortgage insurer.  The moves are aimed at streamlining the short sale process, which often takes months to complete. Faster response times could help thousands of homeowners. Short sale transactions can get so complicated that many prospective buyers won’t even consider making an offer on a short sale property. And many of those who bid often walk away from the offer because lenders take so long to make a decision.  “Short sales are more complex than routine home sales since they may involve multiple parties and long-distance negotiating,” said Tracy Mooney, a Freddie Mac senior vice president. The new rules “are intended to help make the decision process more transparent and timely.”

Banks have also caught on to the benefit of approving short sales. Foreclosures take more time for the bank to recoup their money, and it costs upwards of $50,000 to process a foreclosure.

But in the wake of the robosigning scandal, banks are more apt to help and even encourage a homeowner to pursue via a short sale.

In addition to the benefits of the bank, the homeowner comes out much better in the long run.  Along with a new home, their credit has been salvaged to a respectable level as opposed to letting a home go due to foreclosure. With a foreclosure it can take up to seven years for your credit to show signs of improvement.

I can help you short sale your property for Free. Please contact me at 951-324-6874

2012
04/26
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Short Sale in Riverside | Short Sales Gaining on REO Sales

RealtyTrac  released new data which indicate, based on January’s numbers, short sales in the first quarter were the highest since the first quarter of 2009.

In theory, the company said, a short sale has long been viewed as an “elegant solution” to the nation’s foreclosure problem.  A short sale, in which the lender accepts less money than it is owed, provides a win-win-win for the buyer, bank, and even the seller.  “The buyer purchases a house they want at a price they can afford, the bank gets the best price for its distressed asset, and the seller walks away from a mountain of debt, free to get a fresh start.”

in January there were more than 35,000 pre-foreclosure sales nationwide, 33 percent more than one year earlier, which puts these sales on track to reach over 105,000 for the quarter.  The January figure follows December sales of more than 37,000 indicating that January was not an anomaly.

Read more … 

I can help you short sale your upside down property for Free. Please contact me at  951-324-6874 or  click here.

2012
04/20
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Fannie Mae and Freddie Mac Set Timeline Requirements for Short Sales

Beginning June 15, real estate agents working with distressed homeowners whose loans are backed by Fannie Mae and Freddie Mac should expect to receive a decision on a short sale offer within 30-60 days.

Not only is a short sale an effective foreclosure alternative when home retention is no longer an option, but it keeps homes occupied and helps to maintain stable communities, according to the Federal Housing Finance Agency (FHFA).

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I can help you short sale your upside down property for Free. Please contact me at  951-324-6874 today.

2012
04/19
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The Benefits of Home Affordable Foreclosure Alternative (HAFA)

Home Affordable Foreclosure Alternative is a government mandated program for participating lenders and is available to short sale sellers in Riverside County.

What are the benefits of HAFA?

  • Short sale sellers who participate will receive $3000 in relocation assistance at closing.
  • A HAFA short sale releases the seller from any future liability on the mortgage note(s).
  • There is the opportunity to obtain a pre-approved price for the short sale of your home.
  • Read the  Treasury HAFA Bulletin

Eligibility Requirements:

  • Seller lives in the home or vacated in the last 12 months.
  • Seller has a documented financial hardship.
  • Seller has not purchased a new home within the last 12 months.
  • First mortgage amount is less than $729,750.
  • Loan was obtained prior to 1/1/09.

I am a certified HAFA specialist and I can help you short sale your property for free. Please contact me at  951-324-6874 or click here to email me.

2012
04/11
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Short sales are up on 2011

Late last week, the Office of the Comptroller of the Currency issued a report on year-end loss mitigation activity for most of the mortgages serviced by the nation’s largest banks. The 227,570 new short sales completed in 2011 was a 12% increase from one year ago and more than double the 112,000 measured in 2009, according to the report. As the robo-signing freeze thaws, and new requirements under the attorneys general settlement are enforced, short sales may continue upward in 2012.

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2012
04/02
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LPS Reports 28% Increase In Foreclosure Starts

Foreclosure starts jumped 28% in January compared with December, although starts were down 11.5% from the same month in 2011, according to data firm Lender Processing Services.

LPS also said foreclosure sales, which it defined as a bank repossession of a home from the borrower or in some cases the completion of a short sale, surged 29 percent in January from the previous month.

If you need to move or have difficulty making your mortgage payments I can help. Please call me at 951-324-6874 or 949-459-3969

2012
03/08
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