Your Phoenix short sale specialist believes that there are better alternatives then foreclosure, yet loan modification has a very minor percantage of success.  The loan modification is an effort to drop you payments in order to keep the borrower in the house.  There are quite a few hazards found with the completion of a loan modification.

****most figures maintain the nationwide average for a successful loan modification is near to 10%

****Various banks will suggest a tryout period but in many cases may not disclose upfront that your credit will be affected while doing a trial period loan modification.

*****90% of my clients that I have spoke to have been issued rejection letters from the banks when attempting to complete a loan modification.

Banks know that a large percantage of borrowers that try loan modification will sooner or later short sale or foreclose.  The banks job is to accumulate mortgage payments, and when the bank can get the borrower to agree to a trial period they have achieved their function as the bank.  In the Phoenix market, with the sizeable rate of foreclosure, the bank may not postponed auction dates while the borrower is attempting a  loan modification.  As a short sale specialist, the Steve Horn Team can advise you on all possibilities.

Remember, at Short Sales Done Easy, we work diligently to make your short sale procedure go smoothly. There is no better benefit to a succesful short sale than having a knowledgeable real estate agent working on your side. Steve Horn is one of the most skilled short sale agents in the Phoenix area. Contact him today to discuss the options that are available to you.

Arizona Steve Horn Team can answer your questions. We are Arizona’s Foreclosure Avoidance and Short Sale Specialists.

Get more help from short sale Realtor, Steve Horn, at Homes by the Horn presented by the Steve Horn Team, Short Sale Specialists of Arizona

Can I short sale my house in the Phoenix market if my home is worth less than my mortgage balance? As a phoenix short sale specialist, I will accurately answer that question. Keep in mind, at all costs the bank doesn’t want to foreclose on the property. There are a number of diverse scenarios that we want to verify to the bank in order for a triumphant Phoenix Short Sale.

***does the consumer have indication of hardship, the hardship may be produced by loss of income, loss of employment, annulment, job relocation etc…

****short sale vs foreclosure, the bank in most cases is going to desire the house to sell as a short sale vs foreclosure.

****Is there a foreclosure date set. If there is a foreclosure date set bank may be much more eager to do a short sale.

Please keep in mind, we have closed more than 100+ short sale properties. We have had individuals who are suffering severe hardship additional individuals have not been as harsh. Bottom line is there is a much higher success rate on the short sale, than there is on a loan modification. As a phoenix short sale real estate agent, I will advise you accurately on what your best options are.

Remember, at Short Sales Done Easy, we work hard to make your short sale process go smoothly. There is no better benefit to a succesful short sale than having a knowledgeable real estate agent working on your side. Steve Horn is one of the most skilled short sale realtors in the Phoenix area. Contact him now to talk about the options that are available to you.

Arizona Steve Horn Team can answer your questions. We are Arizona’s Foreclosure Avoidance and Short Sale Specialists.

Get more help from short sale Realtor, Steve Horn, at Homes by the Horn presented by the Steve Horn Team, Short Sale Specialists of Arizona

A few weeks ago, we aired an installment regarding disputing BPO’s. Kevin had an interesting little event at one of our preferred banks that relates to BPO’s. A file was setup and assigned to a processor at Wells Fargo. They asked for some extra documentation, which were provided. Then, Kevin asked what the BPO value was. What occurred after that was a bit out of the ordinary.

The negotiator at Wells Fargo emailed Kevin an actual copy of the BPO. Knowing the BPO now, all of the documents are taken care of and Kevin was expecting agreement. Nevertheless, the negotiator at the bank tells Kevin that the proposal isn’t high enough. Here is the fascinating part. The offer was for $50,500 and the BPO is lower. There are in fact three values on a BPO, but the only one that matters is the “as is” value. The “as is” value of this property is $49,900. The other values on the BPO are the quick sale value of $40,000 and the fully repaired value is $52,200. Nevertheless, with a repaired value, somebody will have to put cash into the house.

All of these values are in line with Kevin’s proposal. Nonetheless, the negotiator still says that the bid needs to be higher. Kevin replied by telling her that the proposal is higher than the BPO and we already know what the BPO value is. The negotiator did not even realize that we had the BPO, despite the fact that we sent her the BPO in the email with the offer.

The fact that the bid isn’t good enough, even though it is higher than the BPO, just makes us irate. This is happening too often. The media would have you believe that banks want to help home owners keep away from foreclosure. Nonetheless, this undoubtedly shows that negotiators are asking for greater offers without a BPO that justifies the request for a higher offer.

Why don’t the lenders take the offer that meets their rules? Agree to the proposal and move on. Even if it doesn’t meet the guidelines, it is a great deal better than foreclosure. It doesn’t help the property owner and it does not help the lender mitigate loss.

Realtors need to be confident in the value of their bid and they need to work hard to figure out the BPO. Lenders need to authorize their staff to think. Set up a structure where realtors don’t need to escalate. Approve the deals and move on.

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We wanted to discuss the interesting market that we are in once more today. Ultimately, we would like to talk to you about a recent phone call that we had with a customer. The customer was wondering if it was better to wait it out. Since she is relocating to another state, she thought that she could possibly rent the property for the next couple years and then sell the home in the future.

We are not in the business of telling our customers what to do, especially when it comes to their mortgage. Nevertheless, it is our job to inform the customer as to the decisions that she can make. The deduction that we came to was as follows.

Because she is not in a bad mortgage payment situation based on what she could get for rent, she would only get about $200 in loss per month. She could simply write that loss off as depreciation. Nonetheless, the key is, if she was merely behind by $20,000, it could be a strong alternative for her.

Looking at the figures from a business position, what it would take for her to rent and then sell in a few years makes no sense. The customer is $100,000 behind in equity. The house is in an out-of-the-way region of Phoenix, giving her a potential for more depreciation. Each occasion that she is negative on the rent to mortgage payment, she would be tacking on more mortgage to her loan balance. Over twelve months, she is going to be $2400 in the negative each year. Compound that on seven years and she will have a long wait to regain the equity in her home. That is given the best case scenario.

As a result, is it in her best interest to wait it out? After we gave her a clear picture of how long it will take to recover that $100,000 her only choice is short sale. She has attempted the loan modification, but it did not work for her scenario.

Because the lender is not willing to diminish the principal. So the next greatest thing for her to perform is the short sale. These are genuine situations that happen every day. As a short sale agent, it is my responsibility to help you recognize the state of affairs and ramifications of your decisions.

Arizona Steve Horn Team can answer your questions. We are Arizona’s Foreclosure Avoidance and Short Sale Specialists.

Get more help from short sale Realtor, Steve Horn, at Homes by the Horn presented by the Steve Horn Team, Short Sale Specialists of Arizona

Today’s topic is focused on seller expectations. As you are selling your house in the Phoenix marketplace with a short sale there are particular expectations that we would like you, as the seller, to be knowledgeable of.

First, you should anticipate a high buyer fallout percentage. Right now we are within a very volitale market with buyers. Buyers like to acquire the top deals. They can be hasty. They may well find a foreclosure property. Buyers are not fully commited to the short sale process because of fear and because they would like to acquire the best deal. The dedication from buyers is not that deep. We strive to tie the buyer down to a agreement by way of nonrefundable ernest money. Depending on the purchase price we tend to ask for $750 to $1000.

An additional expectation you may discover is that the bank is always going to want additional money in a short sale. Depending on your deficiency, assume the bank to ask for a promissary note or cash. Any time they ask for this, we immediately tell them no. That begins the progression of negotiation. Customary practice provides that the bank will note that they have approved the sale buy retain the right to sue you for the deficiency. This is standard verbage in 90% of all approval letters. Selected times this can be altered if you supply a promissary note or cash. With a promissary note or cash you may occasionally get them to relinquesh the right to collect on that deficiency

In Arizona, we are a non-deficiency state. They can not collect on this deficiency, but they can sue you for it. So, you must be conscious of this.

We have our systems in place. We successfully closed 9 short sales in the month of May, a boost from seven in the month of April. We look forward to talking with you.

Arizona Steve Horn Team can answer your questions. We are Arizona’s Foreclosure Avoidance and Short Sale Specialists.

Get more help from short sale Realtor, Steve Horn, at Homes by the Horn presented by the Steve Horn Team, Short Sale Specialists of Arizona

A fantastically crucial subject that has come up in the last couple weeks is our focal point today. We’ve seen this crisis pop up over the last couple weeks and we want you to be able to avoid it.

Make certain that the lender you are working with on a short sale is not the lender where the house owner has a checking account. We have currently had many people over the course of the previous few weeks that have approached us on this subject. Both present customers and soon to be clients have been telling us that the have missed payments and the bank has taken the cash out of their checking account without their permission.

We assume that the note you signed for the mortgage is only secured to the house. It is not secured to the checking account. Still, we believe that the banks have revised or applied their checking account terms of service to obtain their cash. Essentially, they are saying that if you are deliquent on other accounts they can acquire the money from one account to apply it to another account. They are stealing it without any consent.

We don’t know if this is respectable or wrong, but it is happening. So, there is a route around this. Ask your home owner up front where their checking and savings accounts are presently held. Make certain that if they are not held in the lender that you will be doing a short sale with. Without delay have them close down those accounts and get the cash out. It is exceedingly crucial that you know this as short sale realtors and that you share this information with your customers.

Get the word out to other agents and your clients. Do not let this become a difficulty for the people that you are attempting to aid through the short sale procedure. Also, please comment below if you have seen this take place previously. Let us know what lenders are utilizing this scheme.

One extra thing to note, we will be in Las Vegas on August 25th with our Crush It short sales class. So, obtain your ticket today!

Short sale FAQs and more.

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“This leads to more questions, like quite frankly, what does this have to do with the government not being able to afford you losing your home?” Everything! One of the government’s largest tax revenue sources comes from real estate taxes. If people cannot keep or obtain new loans for homeownership, the government suffers, entitlement programs such as Social Security and Medicare suffers, which leads to more job loses and the cycle continues to domino.

Why Are Foreclosures So Cheap?

It is in the nature of their pricing that a fallacy commonly occurs; foreclosed homes are dingy, run down houses. The truth, however, is different. The quality of these properties is usually outstanding, with a large portion of these houses being recently remodeled homes or condos. Home buyers are often bewildered as to why these great looking houses are sold at such low prices. It is nearly unbelievable and seems too good to be true, like a dream come true!

2. Call the second mortgage lender and let them know that a short sale has been initiated with the first mortgage. Provide the paperwork they require. Explain, that at a public sale the second mortgage is wiped out. As I told you, often they do not know it. The public sale also ends their relationship with the property. The second mortgage will obtain a credit card status. They can pursue their balance as an unsecured loan.

3. Make sure that the first mortgage holder is aware of all of the liens and other mortgages. This is the reason they require a preliminary HUD to go with the contract. The Title Company usually prepares the HUD. It is a settlement or net sheet that shows the lender how much they are going to net. On this sheet there should be the pay off for the second mortgage. The first mortgage holder must approve it.

If everything goes smoothly, the second mortgage gets paid something in order to release the lien. They are required to provide this release to the title company in order for the closing to happen. Both lenders will send you forms 1099-A or 1099-C. The amount forgiven is considered an income and should be included on the tax return. There is an exclusion if the house was a primary residence

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You’ll find several things you should contemplate previous to buying. Do you have prior home owner experience? A foreclosure home may well not be in the finest of condition. Are you completely ready to take care of the repair and unpredicted situations that will befall you?  It’s more helpful to you if you have previously owned a house and are mindful of the tough lessons and real expense that come together with it.

Will this purchase be an investment or principal house for yourself?  If your objective is to just fix it up and flip it, probabilities of a fast profit are quite slim if any, specifically in the current market place. You may want to ensure that you are capable to do the repairs and then possibly rent it out for a while. You will find so many bargain foreclosures at this time that you simply can assume your house may sit for some time if you try to flip it.

How is your current financial situation? Even before you’re in a position to discuss price, the research needed to research the market place can cost you. More importantly, foreclosures are frequently trashed and significantly neglected by struggling property owners who are forced to vacate their houses.

The home may possibly be empty and therefore prone to thieves, squatters, and vandals.
These properties occasionally have judgments and liens that you will have to pay off just before you own it. Also, purchasing a foreclosure house is a warning of weak markets in that particular region, and you should be ready to wait it out until the market changes.

You could use your house as collateral to cover the costs or otherwise have some type of liquid cash. Make sure, however, that your financial obligations are small and you’ve got outstanding credit. You will need to decipher what stage of foreclosure your selected property is in.

If the property is in Pre-foreclosure status, the time the borrower has gone into default is 90 days or more plus the lender has provided a notice of default. This information could be discovered in local newspapers or internet businesses who specialize in foreclosures.  This may well be the most effective time period to buy simply because the owner is motivated and much more accommodating. Purchasing directly from the owner is typically simpler than from a loan company later on.

Before you delve into the foreclosure marketplace, do a self evaluation of your circumstances and finances. After that do plenty of research of foreclosures on the market place. Next, speak to the appropriate financial institutions before jumping in. There are various pros and cons for purchasing a foreclosed house which you need to know about prior to buying.

Are you looking for Daytona Beach foreclosures? If so, please visit my site to learn more about available Daytona Beach short sales that are available to invest in.

Yesterday we discussed how essential it is to have an in house negotiator versus outsourcing it to a third party negotiator that you have no power over. Today, we will talk about negotiating the short sale.

What is a day in the life of a negotiator like and why is it so key to have them in house while you negotiate a short sale? When you get a purchase contract and present it to the bank, it takes about thirty days to have your file assigned to a negotiator as well as an extra thirty days to have an appraisal ordered. With negotiators working in house, they call on your file each day. This helps us to slash the appraisal time down from sixty days to 30 days. We see to this because we do not want your house to go to foreclosure and your debt to increase. We in addition do not want you to continue to skip payments because that may hurt your credit score even more. Accordingly, we possess a vested interest in you as our client to have this completed as promptly as possible.

Our negotiator gets your file over to the bank as quickly as possible. Afterward he calls the bank every day to guarantee that the appraisal will get ordered as quickly as possible. When we have the negotiator and the appraisal ordered, we let you know that we are on the right track. This is what amazes me with Phoenix real estate agents that declare they are short sale specialists. Anyone can list a short sale. Conversely, as a listing agent, I couldn’t possibly go to listing appointments plus negotiate dozens of short sales at the same time. That is why we have employed somebody who specializes in negotiating with the banks.

No matter if you hold a listing in Avondale, North Phoenix, Gilbert, Maricopa, or a host of other areas we want your listing.

Arizona Steve Horn Team can answer your questions. We are Arizona’s Foreclosure Avoidance and Short Sale Specialists.

Get more help from short sale Realtor, Steve Horn, at Homes by the Horn presented by the Steve Horn Team, Short Sale Specialists of Arizona

Today’s theme is on the subject of Loan Modifications. We talk in relation to them briefly on occasion, but we don’t usually chat lots about them. Fred got a telephone call from some friends that were basically wondering what their choices were in the existing economic era. They are essentially spending every dollar they make every month. They are not behind on payments, but they are just keeping up. One of their associates suggested that they just walk away from the home and another friend recommended that they attempt a loan modification with a loan reduction. There is a prospect that the bank would reduce the principal balance.

Fred would like to know what everybody else has experienced with loan modifications. He’s merely wondering if anyone has actually seen evidence of a successful alteration to a loan balance. There are thousands of spectators that watch Shortsalepowerhour.com, but Kevin and Fred have still not met anybody that has done a loan loan reduction.

We can presume that there are a few good reasons that lenders don’t do principal reductions on a regular basis. If the banks did this for a few property owners, everybody would be doing it. There wouldn’t be any reason for house owners to pay their current mortgage.

However, if the banks agree to a short sale, they get their cash right away. Then they can lend out that money once more with a new loan. The short sale is undoubtedly the greatest choice for the lender and for the home owners. As further testimony from HAMP itself, the gov’t sponsored loan modification program, 25% of all HAMP modifications are at least thirty days delinquent. The short sale is undoubtedly the finest alternative for the lender and for the property owners.

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