Tag Archives: owned

New Modification Law & Avoiding Foreclosure

A new law that will be implemented on November 15, 2011 is yet another slap in the face to the American Homeowner regarding modifications.

Making Home AffordableThe basic eligibility requirements for an enhanced HARP (Home Affordable Refinance Program) loan are as follows:

  • Existing mortgage loan must be owned or guaranteed by Fannie Mae or Freddie Mac. To check whether a borrower has a Fannie Mae or Freddie Mac loan, go to MakingHomeAffordable.gov’s page on “Look up your loan“.
  • Existing mortgage loan must have been sold to Fannie Mae or Freddie Mac before June 1, 2009.
  • Existing mortgage loan cannot have been refinanced under HARP previously (except for Fannie Mae loans refinanced between March and May 2009).
  • Current loan-to-value (LTV) ratio must be more than 80%.
  • Existing mortgage loan must be current, with no late payments in the past six months, and no more than one late payment in the past 12 months.

More information is available from the Federal Housing Finance Agency (FHFA) on the agency’s website: www.fhfa.gov.

The reason why HARP is not good, is the same basic reason that HAMP (Home Affordable Modification Program) and the traditional modification is as follows:

It is strictly voluntary with all lenders; even though they say they participate.  Of course, there are factors with the seller or borrower that have an affect on being put in a modification plan that eliminate many from it.  This problem could be avoided if the banks would just lower the loan amount to the fair market value and a greater percent of people would have been able to keep their homes.  Even a future shared equity with the lender would have been acceptable if the property was sold for a profit in the future. Few banks are offering this program as well.

In conclusion, it is obviously important that we talk ASAP to go over your situation. I have several associates waiting to help: accountants, attorneys, and credit repair company.  If you’re moving on, getting back on track with your credit, staying in your home with an extended time without payments due in order to recoup finances, and most importantly receiving thousands from your bank at closing are all opportunities within your grasp!  I am just a phone call away!

John | (619) 890-3648

Namaste!

Personal Short Sale Experience

I just closed one of the longest short sales in history with Bank of America. This sale totaled 39 months, over 3 years. Short SaleThere were a few unfortunate problems with this short sale.

Throughout the time of having this listing, there were six individual buyers that were all approved.  Unfortunately, all six also cancelled, with one rewriting an offer through another agent after the initial cancel.  This offer was not submitted when I questioned this buyer’s agent, and as a result, the offer obviously did not go through.

After the seller’s family moved out, they left the house in shambles, but I invested my personal money (which thankfully was reimbursed later through the rent payments) to paint the interior, re-sod the front yard, and thoroughly clean.

There were several liens on the house: water, sewer, trash, and HOA liens.  Most were eventually paid off by the bank and buyer.  The tremendous HOA fines totaling over $5K I managed to negotiate them off completely with no fees to be paid.

The bank changed the locks and I had to pay $250 to re-key the house.

The property sold for $30K less, with a $12K credit for closing costs–very rare on a 50% cash
down purchase, than the REO  (bank-owned) property with no closing costs credit, a block away the
month before.

All these experiences may be things that you, as a short sale buyer, are familiar with.  And while short sale transactions can be the trickiest side of the real estate market, I have had plenty of experience in managing such transactions.  Please, let me be the one to deal with the messy side of short sales–not you!  Give me a call today if you have any questions.

John A Silva
www.johnasilva.com
619-890-3648