August 3rd, 2010
Jen Klein
More often than not, losing a home to foreclosure can be avoided. Simply staying on top of the bank by demanding everything in writing, and confirming details with all involved parties, leaves nothing to be chanced. I have been in negotiations with American Servicing Company, a subsidiary of Wells Fargo, for over 8 months regarding a file that has had its foreclosure sale date postponed 6 times! This home had been listed with several other agents, until it finally landed with me. After some intense negotiations, the aforementioned numerous deadline extensions, several Broker Price Opinions – the bank’s version of an appraisal – and an IRS lien removal we are finally nearing its closing. However, there is one more hurdle we’re needing to overcome… the sale date!
The sale date. You may be asking yourself, “How could that be?” Allow me to explain: We were issued a Settlement Letter – [...] Continue Reading…
August 2nd, 2010
Jen Klein
Do you know how the bank figures the value of your home for a short sale?
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An essential element to completing a short sale is a BPO, which stands for Broker Price Opinion. Essentially this is the bank’s way of obtaining a value on the subject property. Not to be confused with an appraisal, this format requests an agent do an audit of the subject property and establish a Broker Price Opinion, the BPO. It is just that – an opinion of the value of the home, done by an agent, not an appraiser.
This opinion may have either a positive or negative result on the outcome of your short sale. First of all, as I stated earlier, it is “just and opinion” put forth by an agent. Hopefully, your agent is very familiar with the current market values of the homes in your area, and fully understands the entire scope of your short sale. [...] Continue Reading…
July 12th, 2010
Jen Klein
Limit your long term credit liability
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Often I’m asked how soon after I short sale can I purchase a home? Let me start by saying every situation is unique and you should consult with a mortgage professional on your specific situation. However, in general it may not be your score that keeps you from purchasing a home but rather the length of time since the event took place. Industry standards place time allowances on certain mortgage related events.
Know the effects of your decisions BEFORE YOU GO DELINQUENT. There are several different options, each can effect your credit differently. Although there is no magic formula the credit bureaus use to determine score loss, here is a rough guideline as to how many points you can lose with:
30 Days late: 40-110 pts.
90 Days late: 70-135 pts.
Foreclosure, short sale or deed-in-lieu (same effect): 85-160
Bankruptcy: 13-240
The higher the score the [...] Continue Reading…
June 21st, 2010
Jen Klein
How many loans do you have?
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Are you considering a short sale? Did you know that if you only have one loan on your home, the short sale process can be simpler? Or, if you have two loans with the same bank, that’s doable as well. Until recently even if your home had two loans from different banks on it, your short sale had hope. Still, short sales are doable, but if you are concerned and have heard horror stories, I would encourage you to ask “How many loans? Which banks?”
It’s a long time coming but second mortgages fight back! Until recently second mortgages would settle their loan amounts for pennies on the dollar. First mortgages notoriously offer and stipulate that the maximum second mortgages can receive is $3,000. Since second mortgages are likely to receive nothing in a foreclosure situation, they would take it, and [...] Continue Reading…
April 28th, 2010
Jen Klein
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After today’s training with Wells Fargo/Wachovia, I have a new respect for Wells Fargo Bank. I also know now that the banks can and should be doing more to facilitate short sales. Granted, their system has some loopholes and caveats, but I do see an effective and efficient system, which is more than any bank can say at this point. Here are the highlights:
1. After the home is listed a Short Sale Manager from Wells Fargo/Wachovia will personally come out and review the offer and talk with the seller about their options, did I say PERSONALLY!
2. At that point she will review and collect a purchase contract, estimated HUD, and a borrower’s authorization and discuss with you your hardship. (no bank statements, paycheck stubs, etc.)
3. Worried about being 1099’d? You will be informed, prior to signing anything, whether or not you will be 1099′d or if your debt will be forgiven.
3. They are averaging [...] Continue Reading…
April 26th, 2010
Jen Klein
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It’s a new time and era for Realtors. In the past people have picked real estate agents typically by referral. I’ve found that most people looking for a Realtor have often gone to a reliable source to obtain a referral, they’re parents. This mentality is logical, but sometimes not beneficial.
It’s a different market than when your parents bought their homes or when you bought or sold your first home. The current market is in no way stagnant contrary to what the news tells us. There are homes for sale, but with the influx of Short Sales and Bank Owned Homes, writing the proper offer and obtaining the relevant information is imperative to getting the home of your choice. It does take some doing. Very seldom is your first offer accepted.
In a traditional market, buyers could wait to collect several homes in their “would [...] Continue Reading…
April 14th, 2010
Jen Klein
Short Sales just got better for sellers!
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Amid all this rain, there is sunshine! Yesterday the California Mortgage Forgiveness Act was signed, which is great news for homeowners. Those who were previously hesitant to short sale their homes due to the potential state tax to be incurred, can now exhale. Previously there was a threat that CA homeowners would be given a 1099 and the difference would be considered income. Fortunately, if you are struggling to meet you mortgage obligations and are considering a short sale, today was a great day! This enactment is directed toward, but not limited to, original purchase money homeloans on primary residences. This law also increased the eligibility forgiveness. For more information and guidelines
http://www.ftb.ca.gov/aboutFTB/newsroom/Mortgage_Debt_Relief_Law.
*****ALWAYS CONSULT YOUR TAX PROFESSIONAL, EACH SITUATION IS SPECIFIC AND WILL NEED TO BE REVIEWED INDIVIDUALLY. *****
CALL JENNIFER KLEIN (916)230-3880, OR EMAIL JENKLEINSAC@GMAIL.COM
March 25th, 2010
Jen Klein
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Bank of America announced today that they are going to be cutting principal balances for homeowners. The homeowner must be 60 days behind and 120%+ underwater. Bravo! Bravo! This is great news and a great effort! In an attempt to rectify some of the adjustable rate mortgages that were levied to millions of Americans, they are now going to offer serious principal reduction, allowing homeowner’s to reduce balances to the homes current market rate. Homeowners may have some serious relief to the once trendy pay option arm loans and the other ample programs that have caused homeowner’s so much grief.
Perhaps this is an effort to console the “strategic defaulters,” which are a huge element of this foreclosure wave. A strategic defaulter is someone who realizes they may never recoup the amount of equity lost when the market tanked. Typically someone who understands the [...] Continue Reading…
March 4th, 2010
Jen Klein
Sacramento Short Sale Bargains
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Client: “More like that, and I’ll buy 6 or 7!”, words any Sacramento Realtor loves to hear, WACHOVIA short sale closed!
After a couple times out with a client searching for a home for his daughter, we found a Sacramento Short Sale Gem! After we located the floor plan that was appealing to the client, it was a matter of locating a home that was appropriately priced… cheap. Initially we looked at Bank owned homes in the area. We quickly found bidding wars and inflated pricing with unrealistic bank expectations. So, I returned back to what I know, Sacramento Short Sales.
I was able to locate a property, which fit the criteria for the buyer. Unfortunately after the first three phone calls, there was no seller’s agent contact. Which to me indicated if the agent was handling buyer calls this way, I wonder how he was [...] Continue Reading…
February 28th, 2010
Jen Klein
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Homeowner’s Associations are becoming a more contributing factor in the Short Sale Resale market. As the number of vacant properties increases so does the Homeowners delinquency fees, less homeowner’s to contribute to the Homeowner’s Association’s Dues. In the situation of a condo, one of the primary and most predominate factors a financeer will look into is the occupancy rate and status of the current Homeowner’s Association’s financials. Most financing institutions will not finance if the condominium complex has less than 50% occupancy rate. Furthermore, if the percentage of that ownership is primarily non-owner occupied, that can present an even larger problem.
In this current situation, we’ve had a condominium on the market for over 8 months. Initially the condos were FHA approved for financing. As we moved forward and the banks prolonged the approval process, they were no longer FHA approved due to occupancy [...] Continue Reading…
