5 Year Price Trend for Homes in San Diego is a post from: Troubled Property Solutions | Forensic Loan Audit| Class Action Lawsuites | Short Sales call 1-619-631-4546

San Diego Market Trend 2011 is a post from: Troubled Property Solutions | Forensic Loan Audit| Class Action Lawsuites | Short Sales call 1-619-631-4546

See the graph below: The market conditions are prime to short sale you home in San Diego. We can make a good case that the value of your property has declined significantly even in the last year, so doing a short sale is actually getting easier. There are some banks that easier to work with than others, please give a call to find out who.

US Banks worse than Bernie Madoff is a post from: Troubled Property Solutions | Forensic Loan Audit| Class Action Lawsuites | Short Sales call 1-619-631-4546

Great New if you want to short sale in California is a post from: Troubled Property Solutions | Forensic Loan Audit| Class Action Lawsuites | Short Sales call 1-619-631-4546

If you need to short sale in California, things just got a hole lot easier. All lenders that agree to accept a short payoff (short sale) must agree to record the sale as payment made in full of the loan amount. This is really good news for all California homeowners that may need to short sale there home. Troubled Property Solutions has been helping home owners with the short sale process since 2007, we offer a very discrete and private solution. Lender have started to really wake up to the fact that they need to move forward with short sales.

Gov. Brown signs SB 458 into law – LAW AGAINST SHORT SALE DEFICIENCIES EXPANDED

SB 458 extends the protections of SB 931 (2010), to ensure that any lender that agrees to a short sale must accept the agreed upon short sale payment as payment in full of the outstanding balance of all loans.

Under previous law (SB 931 of 2010), a first mortgage holder could accept an agreed-upon short sale payment as full payment for the outstanding balance of the loan, but unfortunately, the rule did not apply to junior lien holders. SB 458 extends the protections of SB 931 to junior liens.

“The signing of this bill is a victory for California homeowners who have been forced to short sell their home only to find that the lender will pursue them after the short sale closes, and demand an additional payment to subsidize the difference,” said C.A.R. President Beth L. Peerce.  “SB 458 brings closure and certainty to the short sale process and ensures that once a lender has agreed to accept a short sale payment on a property, all lienholders – those in first position and in junior positions – will consider the outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property.”

SB 458 contains an urgency clause making it effective upon signing.

This should help with the Short Sales.

Bank of America is going to kick you out is a post from: Troubled Property Solutions | Forensic Loan Audit| Class Action Lawsuites | Short Sales call 1-619-631-4546

This is a re-post of an article from Yahoo news:

Tens of thousands of Bank of America’s most distressed borrowers could be evicted and lose their homes more quickly as a result of a proposed settlement between the bank, which is the country’s largest mortgage servicer, and investors in its troubled mortgage securities.

For struggling borrowers in better financial shape, the outcome could be more positive: the deal would include incentives for mortgage servicers to help homeowners who have fallen behind on their payments and whose homes are worth less than they borrowed.

“The goal is to reinstate as many borrowers in a modification that performs well,” said Tony Meola, a servicing executive with Bank of America. “It also is likely to lead to faster resolution in those unfortunate situations where foreclosure is inevitable. While not a desirable outcome, the recovery of the housing markets depends on moving through the foreclosure process as quickly and fairly as possible.”

While powerful investors stand to benefit from the $8.5 billion settlement over the bank’s bundling of shoddy mortgages as securities, the fallout for the nearly 275,000 borrowers who took out those loans depends greatly on how deep they are in the foreclosure process and whether they earn enough money to dig themselves out.

While no exact income qualification has been set as part of the agreement, which was announced last month, many servicers use a formula in which borrowers can qualify for a modification as long as the new monthly payment does not exceed 31 percent of their monthly gross income. For borrowers who are unemployed or lack the income to cover even reduced mortgage payments, foreclosure and eviction could be much more immediate.

With 1.3 million borrowers at risk of foreclosure, Bank of America has been overwhelmed by the surge in defaults, and the accord has raised hopes that this logjam will finally begin to ease. But skeptics say that previous arrangements, like another multibillion-dollar settlement by Bank of America in 2008, have barely made a dent in the problem.

“The mortgage servicers have repeatedly promised to do things and then not done them,” said Michael S. Barr, a former assistant Treasury secretary who now teaches law at the University of Michigan. “I think it’s positive in general, but I don’t expect it to be transformative of what we’ve witnessed from the mortgage servicers over the last four years.”

Matthew Weidner, a Florida lawyer who represents borrowers facing foreclosure, said he was skeptical of promises by the deal’s architects that lower monthly payments would be easier to obtain.

“It’s like giving aspirin to someone with cancer,” he said of the proposed assistance. “You had all the big players at the top of the pyramid negotiating but nobody was speaking for the homeowners who have far more at stake at the ground level.”

Still, for some of the homeowners now facing foreclosure who took out loans with Countrywide, the subprime specialist bought by Bank of America in 2008, the deal could bring a few quick improvements.

Under the terms of the agreement, Bank of America must now start the process of transferring these borrowers to 10 smaller outside servicers, even without the deal being approved in court, which is not expected before November. The architects of the settlement say these subservicers will be far more efficient than Bank of America’s giant payment processing operation.

For example, an analysis of data by RBS prepared as part of the settlement found that Bank of America provided fewer modifications as a percentage of unpaid principal than JPMorgan Chase, Wells Fargo, Litton and other servicers. In addition, borrowers defaulted again within six months in nearly one in five cases when modifications were made by Bank of America, a higher rate than other servicers that were studied.

Officials at Bank of America contend the company has made nearly 875,000 modifications since 2008, more than any other servicer.

Under the new proposal, subservicers will have to provide an answer to homeowner modification requests within 60 days of receiving paperwork, and will get up to 1.5 percent of the unpaid principal balance as an incentive fee for each successful permanent modification.

“We wanted smaller, high-touch servicers who would consider every modification option at once, not try this and that,” said Kathy D. Patrick, a Houston lawyer who represented the 22 private investors in the settlement. “Servicers get more in fees for successful modifications than for any other kind of workout, including foreclosure.”

The first homeowners should be transferred out of Bank of America by early fall, with each of the 10 subservicers taking up to 30,000 cases. Borrowers with mortgages 60 days past due who have been delinquent more than once in the last 12 months will receive priority in the switch, followed by homeowners who are 90 days past due but not in foreclosure.

Homeowners already in foreclosure or who have been declared bankrupt will go to the back of the line, although they will also eventually be transferred, Ms. Patrick said. More than 75 percent of the nearly 275,000 delinquent homeowners have not made a payment in more than 120 days or are already in foreclosure.

One unintended consequence of the problems at Bank of America and other large servicers is that many borrowers have managed to remain in their homes despite being in default, and without the income to qualify for a modification. At the time of foreclosure, the typical Bank of America borrower has not made a payment in 18 months.

What is more, according to the analysis of RBS data, it takes 30 months on average for a subprime borrower’s property to move from foreclosure to a final sale with Bank of America, nearly a year longer than Wells Fargo, and 10 months longer than SPS, a smaller subservicer likely to be among the 10 selected to take over the former Countrywide loans.

“Countrywide made a lot of bad loans and borrowers with no money can’t afford a modification,” said Peter Swire, a former special assistant for housing policy in the Obama administration who helped oversee earlier federal efforts to promote modifications. He is now a professor at Ohio State University. “One discouraging problem is that only a small fraction of Countrywide borrowers will likely qualify,” Professor Swire said.

Delores Gosha hopes she will be one of the lucky ones.

It has been more than a year since she last made a mortgage payment to Bank of America, raising the risk that her bungalow in the Cleveland suburbs will end up in foreclosure. The bank, she says, has given varying answers as to whether she qualifies for a modification, telling her she did not at one point last week only to reverse course days later and say it was still under consideration. Ms. Gosha said she had had to deal with a multitude of representatives and submit the same documents over and over.

While a new servicer might not give her the answer she has been praying for, she said, at least she will get an answer.

“I’ve been up and down,” said Ms. Gosha, who is a clerk at a Cleveland hospital. “Can’t somebody tell me something?”

Short Sale San Diego Agent is a post from: Troubled Property Solutions | Forensic Loan Audit| Class Action Lawsuites | Short Sales call 1-619-631-4546

There are a few different ways to go about purchasing a home. Generally, homeowners have to take out a home mortgage to buy a home, and that mortgage has to be repaid in monthly or regular payments. If the homeowner ends up not being able to repay the mortgage with those payments, the home can be seized.

In 2007 the real estate market suffered a huge crash. This resulted in many homeowners being unable to keep up with their mortgage payments. This in turn causes foreclosures.

A main reason for so many defaulted payments was because when borrowers were having a hard time making payments they had very slim changes of being able to repay it. The only option was refinancing the home with a lower interest rate, which many mortgage lenders were not willing to do because of so many foreclosed homes.

Since the real estate market was in an up market before the crash, homeowners ran in to trouble keeping up with paying the mortgage bill. They couldn’t just sell the home and purchase a more modest one. That was no longer an option, since there was no profit to be gained in selling a home in a down market.

As home prices decreased, interest rates increased. It increased so much that foreclosures continued to happen at a high pace. Homeowners were kicked out of their home, and then the institution that lent the money in the mortgage would auction the home themselves. The home would still go at the lower price, however. The large amount of foreclosures caused the government to step in.

This is where short sales come in to play. A short sale is when someone sells a home at a price that is much lower than what the homeowner originally bought the home for. The original homeowner’s pending mortgage payment was much higher than what the selling price was going for, but the lenders accepted the initial price to avoid expensive foreclosures and long repayment options.

Short sales are most often considered the better option for a homeowner. While there are still negative outcomes of short sales, the negative aspects are generally considered a much better option than a foreclosure.

For example, after a foreclosure if a homeowner wants to get a new mortgage loan they need to wait nearly five years typically before they can qualify. Short sales, however, usually take around two years. Also, because of the Making Home Affordable (MHA) Program, short sale owners get an allowance of ,500 for relocation expenses, and are usually exempted from any taxes on the forgiven amount of the real estate sale.

Short Sale San Diego Properties is a post from: Troubled Property Solutions | Forensic Loan Audit| Class Action Lawsuites | Short Sales call 1-619-631-4546

Temecula Valley short sales are most often mistaken as foreclosures or reside in that unknown area between knowing and understanding for quite a few agents, homebuyers, and homeowners. To begin this post I am going to provide a definition of what a short sale is:

Definition – A short sale is when the total loan or debt burdens on a real estate property are greater than the overall total value of the home as measured by the direct market comparables.

A lot of people think foreclosures and short sales as the same thing but they are actually very different. Foreclosures are when loan payments are not being made and consequently the bank sends out a Notice of Default. The notice is the first step of the financial institute’s foundation for a foreclosure process. Foreclosures usually take between 4-6 months with the owner of the home losing possession and taking a tough credit hit.

However, this circumstance can often be worked out in that 4-6 month time period. This is often why there has been confusion separating the two since they are frequently intertwined. Once a financial institution has started a foreclosure process, the current homeowner has a limited time to either bring the payments current or leave the property.

The other way to go is a short sale if the banks agree and thereby mortgage forgiveness. When taking this route, the seller lists the Temecula or Murrieta house, makes an deal with the bank or banks and sells the encumbered property before the complete foreclosure process. The financial agreement the homeowner makes with the banks is for the financial lien holder to take a smaller amount than is owed on the property but grant full debt forgiveness for the owner.

Now, why would a bank take less money that is owed? Because, that is all they are going to if they foreclose. The banks often receive more money via a short sale since the homeowner is maintaining the Murrieta or Temecula property and it sells for a higher price. The financial institute also sidesteps the expensive foreclosure process while worrying about one less property in its portfolio. Financial institutions have a tough challenge monitoring all their properties. And, homes that have been foreclosed on often get abused and vandalized losing the lending company even more money.

So in quite a few cases the short sale a solution that works out for the current owner of the home who gets debt forgiveness versus a foreclosure and the financial institute who usually takes less of a loss financially. It also often works for the new home buyer as well because they get a home that is in nice shape many times at or below foreclosure pricing.

It isn’t always a walk in the park though and there are two issues to short sales. The first hurdle is time. Financial institutes often take a long time to the file in order and submit it to a closer and unfortunately a lot of buyers will not wait. As an buyer’s advocate, it is much easier for me to sell a banked owned home or a traditional seller owned home over a short sale.

The second worry is possible tax liability. In the event a bank grant debt forgiveness it is obligatged to report that financial forgiveness as income via a 1099 IRS form. What most of sellers won’t check into is the real situation of their taxes.

Many homesellers are thought of as financially destitute and are thereby relieved of these tax burdens. Sellers in this circumstance need to have a CPA calculate their net worth utilizing the proper IRS form and very well could be pleasantly relieved.

Wrapping up, there is some good news on the horizon. The House of Representatives just overwhelmingly passed a recent bill to reduce the tax negatives on bank forgiven debt. This action further augments the benefits of a short sale over a foreclosure and really reducing the long term financial shock for someone caught in what has become a very normal situation.

Wells Fargo Short Sale San Diego is a post from: Troubled Property Solutions | Forensic Loan Audit| Class Action Lawsuites | Short Sales call 1-619-631-4546

“A Wells Fargo short sale is a way for troubled borrowers to avoid losing their homes in a foreclosure. In a short sale, the bank agrees to accept less than the amount owed on a borrower’s mortgage, allowing him or her to sell off the home at a discount. Often, this makes more sense to Wells Fargo than foreclosing, as they tend to lose less in the process.

Banks have been put on the spot for being less than efficient in helping consumers, but the Wells Fargo short sale is known to be among the fastest in the industry. In fact, one can complete a short sale with the bank in as little as two months, instead of the six or more it usually takes with other lenders. If you’re considering a Wells Fargo short sale, here’s a simple guide to help you get started.

Prepare Your Hardship Letter

Wells Fargo short sale officials put a lot of weight on the borrower’s hardshipa”they want to know that your only option is a short sale and you’re not just taking advantage of market conditions. Your hardship letter should explain in detail how you fell behind, and how a Wells Fargo short sale can help you. Make sure you’re able to back it up with the right documentation, such as dismissal slips, medical bills, or divorce papers.

Find A Good Agent.

You need to list your home with a qualified real estate agent before applying for a Wells Fargo short sale. The listing agreement is one of the main requirements in the short sale package. Find an agent who has specific experience in short sales, particularly with Wells Fargo, as they’ll be more familiar with the

system and in-house policies.

Check Your Home’s Value.

Wells Fargo recommends short sales for people who cannot or do not want to stay in their homes, and whose homes have depreciated. Your agent can draw up a comparative market analysis of similar homes to give you a basis of comparison, which you can use to help your Wells Fargo short sale case. The bank is more willing to work with borrowers who have underwater mortgages than those who still qualify for other alternatives.

Market Your Home.

Like other major banks, Wells Fargo has tightened its rules in closing deadlines. You have to complete your Wells Fargo short sale before the date set in the agreement; otherwise the bank will choose to foreclose. Try to get your Wells Fargo short sale home viewed by as many buyers as possible, and work with your agent to negotiate with buyers for the best possible deals.”

Short Sale San Diego News is a post from: Troubled Property Solutions | Forensic Loan Audit| Class Action Lawsuites | Short Sales call 1-619-631-4546

In addition to bank foreclosures, short sales may often be bought for a discounted amount. Because short sales can lead to complicated transaction, it would be advisable to seek help from an Orange County short sale specialist (provided you are a resident of Orange County). A short sale is defined as an agreement in which the mortgage owner agrees to accept a payoff on the loan less than the loan balance if a suitable buyer for the home is found. Most lenders agree to adhere to a short sale simply because they get a higher portion of the loan balance when compared to the amount that they would have received from selling a property after foreclosure. In almost all cases, homeowners interested in a short sale need to meet several criteria to qualify. They are as follows:

* Homeowners must be behind in their mortgage payments
* Homeowners must offer evidence of economic adversity
* Homeowners must have little equity or no in the property

A short sale isn’t a typical real estate transaction. In the case of a short sale, all parties, together with the loan servicer of the seller, a housing counselor, mortgage investors, junior lien holders, as well as insurers, may be engaged.

Short sales are often considered to be a hassle in the recent market. Homeowners may not be informed the time of the sale, and the bank often takes time to make a decision to accept the homeowners offer. Despite this fact, is believed to be a cost saving and practical approach for all parties engaged with the proper guidance of an Orange County short sale specialist.

Short Sale San Diego Home is a post from: Troubled Property Solutions | Forensic Loan Audit| Class Action Lawsuites | Short Sales call 1-619-631-4546

What’s important is to assess short sale plausability, whether or not your home is upside down. When you as a borrower are upside down, you own a house and you owe more than it is worth, you are having financial difficulties, and you don’t want to continue paying what is owed. There are many ways in which a borrower gets into a short sale situation, including large drops in home valuation, economic hardship including job loss, and/or adjustable mortgage rates that really spiked.

Now that you have classified yourself as upside down, it is likely that you are having trouble making payments on your mortgage in which case you are close to being foreclosed upon. In order to avoid foreclosure you must first call up your lender in order to recieve the required short sale documentation.

Realtor:

• Letter of Authorization (signed by seller)
• Letter of facts about the property
• Market analysis
• Photo’s (not the glamour shots)
• Copy of all showings with dates and feedback
• Copy of Listing Contract
• Copy of Purchase Contract (if applicable)
• Review letter of hardship
• Send to Loss Mitigation Department

Seller:

• Two years tax returns with W’2s
• Three months bank statements
• Current monthly budget
• All mortgages with account numbers
• Any pending bankruptcy
• Hardship letter (make them cry)
• Last 30 days pay stubs (if applicable)

excerpt taken from http://www.teamaguilar.com/short-sale-documents.html

This is a lot of work.

Following retrieval of the proper documentation, you’ll need an offer. Once you have an offer and the required docs, submit everything to your lender. Remember that banks want as much money back from the home as possible, and you want to sell your home for as high as possible, so continue to market your home until you have the highest offer possible, or until the bank accepts an offer high enough. Ideally you are looking for an offer near the appraised value of the home, this will likely get you the green light. The final step is initiated after your green light is given on the offer, in which case you’ll want to begin escrow, and close the transaction. This is a very simple version of the short sale process, but it is a good start. If you have further questions feel free to review Short Sale Frequently Asked Questions.