New Lender Program "Customer Relief"

To be prepared is half the victory.
"Miguel Cervantes"

 

I spoke with a Wells Fargo Representative today to get clear on a program that was rolled out 2 months ago. I get a sense the lenders are trying to work out the details to be more accurate, effective and efficient. It is called the "Customer Relief program". Through this program all net proceeds will go to the first lien holder and the second will be wiped out with a zero balance. If homeowners are qualified for this program through the first lien holder then the second from what I am told has to participate. (We shall see). In addition; if the second does get wiped out it still falls within the debt forgiveness however; they will still get a 1099. If the BPO comes back higher than the unpaid balance then the homeowner will be declined for the Customer Relief program and will move into traditional short sale status. The lenders that are participating in this are the following:


- Wells Fargo

- GMAC

- Bank of America

- Chase

- Citi Group

Homeowners who WILL NOT qualify are:


1. Fannie Mae loans ( Freddie Mac is okay)

2. Lots

3. Capital Markets

The benefit for the homeowner is if they are 90 days past due on their mortgage they will NOT be asked to provide their bank statements, pay stubs or tax returns. 30 and 60 day lates will still need to provide the standard financial information. It is still unclear exactly what the qualifications are as the lender has only provided who will not be qualified for this but we were told that the value of the home and the offer would not be a determining factor. As we learn more about the program we will provide you with more information.


Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close short sale transactions.

LOTUS REALTY GROUP
PROFESSIONAL SHORT SALE NEGOTIATORS

At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are...

New Lender Program "Customer Relief"

1. To be prepared is half the victory.
2. "Miguel Cervantes"
3.  

I spoke with a Wells Fargo Representative today to get clear on a program that was rolled out 2 months ago. I get a sense the lenders are trying to work out the details to be more accurate, effective and efficient. It is called the "Customer Relief program". Through this program all net proceeds will go to the first lien holder and the second will be wiped out with a zero balance. If homeowners are qualified for this program through the first lien holder then the second from what I am told has to participate. (We shall see). In addition; if the second does get wiped out it still falls within the debt forgiveness however; they will still get a 1099. If the BPO comes back higher than the unpaid balance then the homeowner will be declined for the Customer Relief program and will move into traditional short sale status. The lenders that are participating in this are the following:

- Wells Fargo
- GMAC
- Bank of America
- Chase
- Citi Group

Homeowners who WILL NOT qualify are:

1. Fannie Mae loans ( Freddie Mac is okay)
2. Lots
3. Capital Markets

The benefit for the homeowner is if they are 90 days past due on their mortgage they will NOT be asked to provide their bank statements, pay stubs or tax returns. 30 and 60 day lates will still need to provide the standard financial information. It is still unclear exactly what the qualifications are as the lender has only provided who will not be qualified for this but we were told that the value of the home and the offer would not be a determining factor. As we learn more about the program we will provide you with more information.

Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close short sale transactions.

LOTUS REALTY GROUP
PROFESSIONAL SHORT SALE NEGOTIATORS

At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are...

Re Cap of HAFA Guideline Changes

(Quote) “Any Change, even for the better is accompanied by drawbacks and discomforts" Arnold Bennett

I hope you all had a wonderful long weekend. I was able to get away briefly to Sedona, Arizona. It started off quite rough actually with unexpected surprises that left me in a vulnerable state. I realized how my life has been structured with work and things I can control on a daily basis and how much I count on that but the minute I was put in a circumstance where everything had changed which was out of my control; let me tell you, it was touch an go there for a moment. I learned surrender. To let go and allow everything to unfold as it was suppose to and I had an experience that was better than I could have controlled all on my own. That is so true in all aspects of life really whether it is business related or personal related. They are all connected.

In our business we deal with circumstances out of our control all the time especially with short sales. I have seen first hand how these changes can cause alot of frustration and confusion with professionals in our industry however; when I look back over the years all of changes were for the greater good for all parties involved when we work together, surrender, allow and trust.

Below you will find a recap of all of the new changes to the HAFA guidelines. I will be keeping a running list of not only the changes within HAFA but also Fannie Mae, Freddie Mac and all other lender updates and make sure you are all abreast with the most current information so you will be fully armed and ready to set proper expectations with your clients.

Short Sale Guidelines

HAFA Qualifications for Incentive:

1. Must be owner or tenant occupied

2. 3k seller/tenant relocation assistance

3. Payment to 2nd lien holder is 8% or 8500k

4. If Fannie/Freddie backed loan payoff to 2nd lien is 6000k

5. Property can be vacant or tenant occupied up to 12 months before the Short Sale Agreement but seller must be able to prove it was their primary residence and they have not purchased another home in the last 12 months.

6. Mortgage must be originated on or before Jan. 1st 2009 (for 1st lien)

7. Balance of Mortgage has to be under 729,750 for 1 unit properties. Higher balances are available for 2-4 unit properties.

8. Program is extended through Dec. 31, 2013. Contract must be written on or before this date and must close escrow before Sept. 30, 2014.

9. Military- Any active military members who have been forced to deploy or relocate for service qualify as owner occupants if it was their primary residence.


Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close short sale transactions.

LOTUS REALTY GROUP
PROFESSIONAL SHORT SALE NEGOTIATORS

At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are...

Hottest topics in Real Estate today with George Chamberlin on KOGO

Please join Lotus Realty Group and" SPECIAL GUEST" number one Real Estate Attorney in San Diego "David Bright" on 95.7 FM and AM 600" MONEY MATTERS" with George Chamberlin Sunday August 26, 2012 at 10:30am.

George and David will be discussing the market, legal issues with short sales today and the new FANNIE MAE AND FREDDIE MAC improvements to allow homeowners to short sale their property in a more effective and efficient manner. Tune in and get the latest updated information in real estate today from the top professionals in the industry.


Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close short sale transactions.

Cultural Shift by Cari Drolet, Founder of Lotus Realty Group

http://www.visionmagazine.com/archives/1206/1206_viewpoint_worms_waking.html

Sleep my little baby-oh
Sleep until you waken
When you wake you'll see the world
If I'm not mistaken...

Kiss a lover
Dance a measure,
Find your name
And buried treasure...

Face your life
Its pain,
Its pleasure,
Leave no path untaken.”
― Neil Gaiman, The Graveyard Book

Fannie Mae and Freddie Mac Updated Short Sale Guidelines

(Quote) Education is the most powerful weapon you can use to change the world.

"Nelson Mandela "

There have been several changes over the last 6 months with short sale guidelines. It has always been important for me to make sure you are all up to speed with the most current information so you will be able to ask the right questions and set proper expectations with your buyers and sellers. Staying on top of these changes will only allow you to better explain to your potential clients what to expect moving forward. In addition to being well versed in short sales and charming your clients with your knowledge; you will bring some much needed peace of mind back into their lives. It is no secret that losing your home is no picnic and this is a very stressful time for them. Be your clients glimmer of hope for a knew beginning, a new chapter. One homeowner at a time, we can make a difference.

Below are the most recent changes with the government backed loans and Bank Of Americas Cooperative short sale program:

Loans owned by Fannie Mae and Freddie Mac will take longer than a regular short sale. The investor has to sign off on the value and their review process takes 45-60 days to complete. In addition; Fannie Mae and Freddie Mac first liens will only give 10% up to $6000 to second lien holders and no other parties can contribute to the second lien payoff.

A great way to be able to set expectations with your clients is to ask them if their loan is owned by Fannie or Freddie. ( See seller interview questions) If they are not sure they can go to the government sites and get that information by entering the property address.

EXTRA TIP OF THE DAY

Bank of Americas Cooperative short sale program that offers incentives for homeowners to short sale their property has stated ; if the second lien has Mortgage Insurance, the homeowner will NOT qualify.


For more information please contact Cari Drolet, Lotus Realty Group at 858-764-7300 or by email cari@lotusrealtygroup.com

Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close short sale transactions.


LOTUS REALTY GROUP
PROFESSIONAL SHORT SALE NEGOTIATORS


At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are...

Is The Worst Over?

(Quote) Hope doesn't come from calculating whether the good news is winning out over the bad. It's simply a choice to take action.
Anna Lappe

There have been alot of opinions going around about our market and if the worst is over. There are signs that the market may be stabilizing however; I feel that we need to keep our eye on the local market and weigh it against what is happening nationally. Often times the two do not align because of our relatively robust market compared to many areas of the nation that are having much deeper problems.

Keep in mind that this is an election year. Historically, those in politics that are trying to get elected, or get their candidates elected, are doing whatever they can to make people feel that they are better off than they actually are. Therefore, I expect we will see an even stronger push to help people keep their homes or short sale them.

I believe we will experience increased foreclosures, which is inevitable as some people have abandoned their former homes, or have no desire to go through a short sale. There is already a large inventory that falls in this category ( Ghost Inventory).

It is in the investors best interest to do whatever they can that causes the inventories to stay low. So the longer they keep the ghost inventories in the closet the better their chances of diminishing deep losses.

It is always a good thing to remain hopeful. I have so much hope in so many areas of my life that often times I get disappointed when I feel that my hopes and aspirations are not happening as they should or returning to me fast enough. I can only form the best opinions and judgment's based on the information that I have right now to be able to move forward in a positive way and from where I a m standing I can see that we still have alot of global issues to work out. We still have a large unemployment factor and as long as this is a part of our economy we will still see a large number of homeowners unable to pay their mortgage and forced to either short sale or foreclose.

Yes, I believe that the government is doing what they can to implement programs for homeowners to stay in their property however; experience has taught me that nothing happens exactly according to plan and there is always a wrench thrown in the mix. For example; when SB-458 was passed stating that there will be no deficiency judgment once the short sale is complete; they extended that to second lien holders. What did that do? It actually further irritated the second liens and made it more difficult to negotiate the payoffs as alot of times they want to increase the amount since they are unable to pursue the homeowner for more money once they short sale is complete. Some things in life are bitter sweet I suppose. Light and dark. You cannot have one without the other to some degree.

For me, I choose to keep working out my systems. Making sure that I have a strong team in place to prepare for anything that comes my way in this market as nothing is certain and everything changes.

Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close short sale transactions.

LOTUS REALTY GROUP
PROFESSIONAL SHORT SALE NEGOTIATORS

At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are...