Short Sale The New REO

One of the largest lenders Bank of America is Tripling their number of mortgage assistance centers. This bold move leads me to believe that they are preparing even more for what has become an industry standard, The Short Sale.  Many homes are being lost to financial hardship from lack of employment but tied very close to that are the people that are in homes so upside down in equity that they will not be back to even equity for many years maybe 10 to 15. It is a numbers game but if these banks really take a look (and they now are) the best way to market recovery is too embrace the Short Sale and stop the bleeding. Values will really start to form a housing bottom and those who Short Sale can be back in the market within a couple of years and help absorb some of the housing  inventory. If you or someone you know is facing hardship or an upside down mortgage call Josh Groesbeck 208-353-7131 or www.idshortsale.com

http://video.cnbc.com/gallery/?video=3000020309

Meridian, Idaho Short Sale

Very desirable Woodbridge (Snorting Bull) subdivsion located in . LOCATION LOCATION LOCATION- This home is in a wonderfull area close to I-84, ST. Lukes Hosiptal and shopping. Gourmet kitchen, warm and open floor plan with many upgrades. Enjoy east facing back yard with no back neighbors. You will also enjoy walking paths and community pool. This is a must see! 3 bedroom 2 bath 1514 sqft.

This is a Short Sale offered by Joshua Groesbeck – To schedule your own private showing call Josh at 208-353-7131 or josh@homeswithjosh.com – To view this and all properties on the Intermountain Multiple Listing Service visit www.homeswithjosh.com

Faster Short Sale Approvals after B of A Insurance Scam

Ever feel like your mortgage servicer or company is just toying with you and your HAMP program- It should be black or white, completely transparent and well let’s admit it– Can I get a loan mod and does it even make any sense if my home is totally upside down (bought at 300k now worth 175k)- Here in Idaho job unemployment rate is still above 9% and not looking to drop drastically anytime soon.  If your loan company is jerking you around please don’t hesitate to call or email Josh with your questions. Idaho’s Best Short Sale Specialist! Read below what the big boys in banking are doing it might make you shake your head–

Bank of America gets caught with their hand in the jar and blames Countrywide.

But doesn’t Bank of America own Countrywide?  Yes!

When Bank of America took over Countrywide in 2008 during the worst housing crash since the Great Depression, according to Bloomberg, BofA absorbed Balboa Insurance.  Essentially, Balboa Insurance…now owned and operated by BofA, is insuring their own bad debt.

What does this mean?  Bank of America’s “Countrywide Loans” that have been defaulted against by homeowners are insured, meaning Bank of America is feeling no pain and actually is gaining from this type of bad debt. Meaning that BofA is in no hurry to sell bad debt.  That’s why there is “Shadow Inventory” and Short Sales are taking so long to approve for sale. There’s no hurry when your making money.

Why Bank of America is gaining on a defaulted loan?  It seems that the Federal Trade Commission (FTC) uncovered ”scamming” on behalf of  “Countrywide” last month.  Remember, Bank of America bought/took over, what ever you want to call it, Countrywide at the Federal Governments request.

What was the scamming?

Countrywide had established Balboa Insurance to cover their home loans gone bad.  In an effort to help defray these losses on bad loans, Balboa Insurance and Countrywide would over charge the now defaulted homeowner for any related services to the default…like mowing the lawns, maintenance of the home, painting, etc…yes, Countrywide in it’s need to make money, charged up to 2 times the amount back to the homeowner for these services.  This is in clear violation to FTC guidelines as it pertains to loan servicing.

So what?

Well, Millions and millions of dollars have been scammed from the clients that they hold a fiduciary responsibility. Kinda like Bernie Madoff screwing his own clients out of their money.   Well, it’s now 2 years later, and Bank of America “Countrywide” division has been caught red handed.  However, no one is being held responsible.  Why?

BofA was helping out the Feds by taking over the Countrywide catastrophe and with that comes immunity.  Above the law stuff…”you do us a favor, no one will suffer.”

Know that BofA has been caught, the new CEO, Brian Moynihan stated earlier this month that they have a “desire” to sell Balboa Insurance.  Desire?  What does that mean?

C’mon…let’s be real.  BofA makes tons of money on bad loans.  That’s why it takes so freakin’ long to get a BofA short sale approved!  That’s why there is “shadow Inventory”!

So what happens next?

As soon as CEO Moynihans “desire” is fulfilled and Bolboa is sold…it should open the flood gates to short sales and release of “shadow inventory”.

It’s good news…however, no one person is held responsible. No one goes to jail.

Do the Feds a “solid” and your protected!

Foreclosures Down And Short Sales Up

Here is an insightful video from  CNBC  and what to expect from the housing market in the months ahead. If you have questions or would like assistance with your home please don’t hesitate to call or email, Josh.

Exiting Home Sales Down

Joshua Groesbeck

208-353-7131 or josh@homeswithjosh.com

www.homeswithjosh.com or www.idshortsale.com

Idaho Short Sale Process

Goal:  Avoiding Foreclosure

The following are the steps that you as a homeowner can anticipate in the short sale process.  This is a general outline of how the process occurs, however please note that lien holders can change the order of some of the steps.  Detailed below is the process our team uses to process a short sale.  For a brief overview please see. www.homeswithjosh.com and look under Short Sales

Pre-Listing

1.
Please contact Josh’s office for a brief consultation about short sales.  Josh or one of his team members will collect some basic information about your situation.
2.
A tentative appointment will be scheduled to answer questions and/or list the home for sale in the short sale process.
3.
Josh and his team will prepare a short sale packet which will be sent to you either via FEDEX, regular mail or email.  We provide a thorough packet of information in advance of the appointment so you have the opportunity to evaluate our process and have your questions answered in advance.  If what we send you and what we discuss prior to the appointment makes sense and you feel comfortable and confident to go forward with the short sale process, our appointment will be confirmed. The packet will include:
*
Information about the short sale process.
*
Market data on the value of your home in today’s market.
*
Recommended short sale pricing.
*
Listing contract and related forms.
*
Property detail report from the county assessor’s office.
4.
The appointment.  Josh will either come to your house to receive the documents or they can be returned via fax or email. We can do listing appointments via telephone or email if necessary.
5.
Once we receive a signed listing agreement we will begin the short sale process.
6.
An authorization form will be submitted to your lien holder(s) enabling us to speak to them on your behalf.  Unless previously provided, the lien holder(s) will provide their short sale requirements when the authorization is received.

Marketing

1.
Your home will be listed immediately on the Multiple Listing Service.
2.
We will market your home through various affiliated web sites and all other applicable marketing strategies.
3.
During the marketing period we will receive offers and present them to you as they are received.
*
Offers will be presented to you on an offers spread sheet.
*
You will be able to see the net offers as they come in.  We highlight, in yellow, the current highest net offer.
*
You will sign the purchase offer of your choosing.  We will advise you as to what appears to be the strongest offer.  We will encourage you to consider two important factors; price and the willingness of the buyer to wait for the short sale process to complete rather than back out in the middle of the process.
4.
You will select and sign the offer that is most likely to meet the lien holder(s) criteria for a short pay off of your loan.

Short Sale Processing

1.
After you select an offer it will be signed by you and presented to your lien holder(s).  This is the official beginning of the short sale processing phase.
2.
You can track your short sale offer, as it is processed, online at Short Sale Status.
3.
The offer and all documentation required by the lien holder(s) is submitted by our office to the lien holder(s).
4.
Documents go through a processing period and are assigned to a negotiator.  The lien holder(s) assign a negotiator to your file.  The negotiator will ultimately make the final decision about your case.  The negotiator will review your offer and present the offer to any investors into your loan.
5.
A BPO (Broker’s Price Opinion) or appraisal will be ordered by the negotiator.  This BPO is used to determine the value of your home and whether or not the net proceeds of the offer are sufficient to satisfy the investors and thus provide a short pay off of the loan(s).
6.
The negotiator will evaluate your financial situation to determine whether or not you qualify for a short sale.  The offer will be presented to the investors who are invested into your loan.  They will decide if your short sale is approved or not.
7.
The negotiator will report the response of the investors.  There will be one of three options:  Short Sale Approval, Short Sale Approval with Conditions or Denial.  If any other answer then Short Sale Approval is provided we will negotiate further on your behalf.
8.
After all negotiations are complete you will either accept or reject the terms of the short sale.
9.
Written short sale notification is delivered to the buyer’s agent and Escrow begins.

Escrow

1.
Escrows in short sales generally follow the same process as a regular escrow.  One difference is that the short sale approval has a “good through” date by which time the short sale must be finalized and escrow must be closed.
2. When escrow begins you will need to make plans to be moved out of the house by the close of escrow.

Josh Groesbeck

208-353-7131 or josh@homeswithjosh.com

Mortgage Defaults Idaho

Although defaults are showing as a decline in three straight months I expect to see them go up again, there is lots of shadow inventory still out there. As explained in the article below from Idaho Business Review there is the now and there is what will be coming in the next few months ( more delinquent loans). If you or some you know is having experiencing a hardship and worried about there mortgage we specialize  for the homes in these Idaho cities- Boise,Eagle,Meridian,Nampa,Star,Middleton,Caldwell or Kuna-

Joshua Groesbeck 208-353-7131  or josh@homeswithjosh.com or www.homeswithjosh.com and www.idshortsale.com

Mortgage defaults in the Treasure Valley have declined for the third straight month. Idaho Data Providers is reporting that 577 defaults were filed in June, down from a high of 949 in March.

In their June market report, Idaho Data Providers stated that there would be some months of decline on default filings due to the two government programs that have been implemented to help homeowners avoid foreclosure. Both the Home Affordable Modification Program and the Home Affordable Foreclosure Alternatives Program have slowed down the filings, as these programs must evaluate non performing loans for short sale eligibility.

“There has been a huge number of “shadow inventory” created. It is taking servicers longer to complete the filings of mortgage defaults because of the high number of non performing loans that need to be evaluated and processed,” said Idaho Data Providers.com President Charlie Nate.

Nationally the average number of days delinquent for more than 90 has grown from 189 days in January 2009 to 282 days in May 2010.

Locally, seven percent of all loans in Idaho are 30+ days delinquent and 2.5 percent of loans are in the foreclosure stage, for a total of 9.5 percent of all loans that are non current.

Source: IBR

HAUP Home Affordable Unemployment Program

The Home Affordable Unemployment Program (HAUP) begins today. It is designed to provide relief to unemployed homeowners. HAUP (referred to as “UP”), “offers eligible unemployed borrowers a forbearance plan to temporarily reduce or suspend their mortgage payments.”

By August 1, 2010, all servicers who are participating in Making Home Affordable will be helping homeowners who are struggling to stay current because of unemployment.

Here are the details:

Forbearance Plan Eligibility:

A borrower must meet the Home Affordable Modification Program (HAMP) eligibility criteria as well as:

  • be unemployed when request is made;
  • be entitled to receive unemployment benefits in the month of the UP forbearance plan effective date (servicers have discretion to require a borrower to have received unemployment benefits for up to three months before commencement of the forbearance plan); and
  • request an UP forbearance plan before they become seriously delinquent (i.e., miss three monthly mortgage payments).

Forbearance Plan Evaluation:

Servicers must follow these requirements when evaluating a borrower for an UP forbearance plan:

  • Unemployed borrowers who request assistance for HAMP must first be evaluated for an UP forbearance plan. If they qualify, they must be offered an UP forbearance plan before they can be considered for HAMP.
  • Borrowers currently in a HAMP trial period plan who become unemployed may receive an UP forbearance plan if they have missed less than three monthly payments as of the first payment due date of the HAMP trial period plan. If they do qualify, their existing HAMP trial period plan must be cancelled and the UP forbearance plan must immediately begin without waiting until the borrower has received three months of unemployment benefits.
  • Borrowers previously determined to be ineligible for a HAMP modification may request an UP forbearance plan if they meet the eligibility requirements.
  • Borrowers in a permanent HAMP modification who become unemployed are not eligible for an UP forbearance plan.

Forbearance Plan Terms

  • Term must be three months or upon reemployment (whichever is less). Servicers may extend this period according to their investor/regulatory guidelines.
  • Monthly mortgage payment must be reduced to less than or equal to 31% of the borrower’s gross monthly household income and may be suspended in full.

Transition to HAMP

  • Borrowers in an UP forbearance plan will be evaluated for HAMP at either reemployment or 30 days prior to the UP forbearance period expiring (whichever happens first).

Source: HSH

If you are experiencing problems making you house payment or see that foreclosure is possible we can help!

Joshua Groesbeck

208-353-7131 or josh@homeswithjosh.com

www.homeswithjosh.com and www.idshortsale.com

Pre-Approved Short Sale In Eagle Idaho

Pre-Approved Short Sale in Eagle, Idaho – Bring Offers! Gorgeous Custom Home in very desirable Senora Creek with huge water feature behind for privacy, granite counters, custom cabinets, stainless steel appliances including gas range, 9 foot ceilings, breakfast bar, birch wood floors in kitchen, dining, entry & hallway, large master bedroom with sitting area and access to private patio, separate vanities in master bath with garden tub and walk-in shower, tile in all baths, his & her walk-in closets, Jack & Jill bath, plumbed for central vac, huge laundry room w/sink, oversized 3 car garage, patio off kitchen area. Club House and Pool! Don’t Miss This Opportunity!

Simply go to www.homeswithjosh.com and put in Mls# 98423866   Call or email Josh to schedule your showing today!  208-353-7131 or josh@homeswithjosh.com

Of course if you would like more information on short sales in Eagle, Boise, Meridian,Garden City, Nampa, Caldwell, Star, Middleton or Kuna look on my accurate real estate website or give me a call. Don’t lose out on the $,8000 tax credit for first time home buyers and the $6,500 tax credit for home owners looking make the next move.

Options When Facing Foreclosure

1. Do Nothing – If a homeowner does nothing, they most likely will lose their home at foreclosure auction.  Loan applications generally ask if the applicant has ever been foreclosed upon.  Credit reports also disclose this damaging information. Not the best option.

2. Payoff/Refinance – Completely paying off the entire loan amount plus any default amount and fees.  Usually this is accomplished through a refinance of the debt.  New debt is at a normally higher interest rate and there may be a prepayment penalty because of the recent default.  With this option, there should be equity in the home.

3. Reinstatement – Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.

4. Loan Modification – Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan.  This may allow the homeowner to catch up at a more affordable level.  To qualify, you must prove to the lender you have fixed the problem that caused the late payment.

5. Forbearance – Lender may be able to arrange a repayment plan based on the homeowner’s financial situation.  The lender may even be able to provide a temporary payment reduction or suspension of payments.  Information will be required from the lender to show that you are able to meet the new payment plan requirements.

6. Partial Claim – A loan from the lender for a 2nd loan to include back payments, costs and fees.

7. Deed in Lieu of Foreclosure – Give the property back to the bank instead of the bank foreclosing.  Banks generally require the home be well maintained, all mortgage payment and taxes must be current.  Most loan applications ask if this has ever happened.

8. Bankruptcy – This option can liquidate debt and/or allow more time.  I can refer you to a qualified bankruptcy attorney.

–Chapter 7 (Liquidation) To completely settle personal debt.

–Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3-5 years.

–Chapter 11 (Business Reorganization) A business debt solution.

9. Sale – If the property has equity (money left over after all loans and monetary encumbrances are paid). The homeowner may sell the home without lender approval through a conventional home sale.  In this case, the homeowner will get cash from the sale.  On the other hand, a Short Sale, also known as a pre-foreclosure sale, can be negotiated with your lender by your Real Estate Professional if what is owed is MORE than the property’s value.

Hope this information is helpful and if you have any questions please feel free to call Josh Groesbeck 208-353-7131 or josh@homeswithjosh.com and don’t let your home go to foreclosure.

Idaho Short Sale Application

Your confidential short sale application is now available by clicking here

http://www.homeswithjosh.com/home/short-sale-application/