Housing Fix Or Let It Fail
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:
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Information about the short sale process.
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Market data on the value of your home in today’s market.
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Recommended short sale pricing.
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Listing contract and related forms.
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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.
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Offers will be presented to you on an offers spread sheet.
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You will be able to see the net offers as they come in. We highlight, in yellow, the current highest net offer.
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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
Idaho Short Sale Help
Strategic Walk Away!! Is your home worth less than what is owed? Making less money? Divorce? Hospital Bills? Hardship is everywhere in today’s economy but think towards the future– If you are in trouble of losing your home to foreclosure or have already tried to modify your loan with no success and are now in need of help– Call Josh 208-353-7131 or josh@homeswithjosh.com We can solve your problem today and let you start preparing for the future, the next home you buy will be at the right price not some super inflated unrealistic price. You have heard it all before and it will always be true Real Estate is the best investment if you buy right!
www.idshortsale.com or www.homeswithjosh.com
Read this below and it will explain what Fannie Mae is doing to crack down on the Walk Away
If you choose to walk away from your mortgage rather than work something out with your servicer, Fannie Mae will block you from getting another mortgage for seven years from the date of the final foreclosure on the house. That’s according to new rules that go into effect immediately.
But, if you do work with your servicer to come to some agreement — whether a loan modification, deed-in-lieu of foreclosure, pre-foreclosure sale or short sale — your wait time to buy a new house will be much shorter. In fact to encourage people to work with their lenders rather than just walking away, Fannie Mae is shortening the time you’ll be eligible for another Fannie Mae mortgage.
“Walking away from a mortgage is bad for borrowers and bad for communities and our approach is meant to deter the disturbing trend toward strategic defaulting,” Terence Edwards, Fannie Mae’s executive vice president for credit portfolio management, said in making the announcement.
“On the flip side, borrowers facing hardship who make a good faith effort to resolve their situation with their servicer, will preserve the option to be considered for a future Fannie Mae loan in a shorter period of time.”
Here’s the breakdown for eligibility depending on how you got out of your last mortgage:
* Deed-in-Lieu of Foreclosure> — reduced from four years to two years if you can put down 20 percent on your house, four years if you can only put down 10 percent.
* Preforeclosure Sale — remains at two years if you can put down 20 percent, four years if you can only put down 10%.
* Short Sale — will be the same as pre-foreclosure sale. Currently there are no set rules for short sale.
* Strategic Default (Walk Away) — seven years.
All these waiting periods start on the day after the completion of a preforeclosure event or foreclosure event. If you can prove there were extenuating circumstances, such as the loss of a job, the waiting period for deed-in-lieu, a preforeclosure sale or short sale will be reduced to two years with a 10 percent down.
In all cases eligibility will be dependent on other factors, such as credit history and credit score. The eligibility matrix is complex and varies greatly depending on your economic situation. Take a close look at the matrix to figure out what you need to put down based on your credit score.
Fannie Mae is taking action now because statistics show that more and more people are willing to walk away from their home because there doesn’t appear to be any negative effect. In a study from the University of Chicago the researchers found that 31 percent of foreclosures were strategic defaults. The researchers defined strategic defaulters as “homeowners willing to default when the value of a mortgage exceeds the value of their house, even if they can afford to pay their mortgage.”
In addition to increasing the wait time until one can buy another home, Fannie Mae also will encourage servicers in states that permit them to go after a short fall, to begin chasing strategic defaulters for the money. This shortfall happens when the bank sells the foreclosed home for less than the mortgage. The bank can then go to court in many states and ask for a deficiency judgment. Not all states allow lenders to chase borrowers for the money. If you are planning to walk away from your home that is underwater, be sure to talk with an attorney to find out whether your lender can chase you for any shortfall.
You can avoid a deficiency judgment if you come to some agreement with your lender, but be sure you have a good attorney checking the agreement to be sure the lender can’t chase you. In most walk-away cases you can protect yourself from a deficiency judgment with a deed-in-lieu of foreclosure or a preforeclosure or short sale.
Clearly the banks are taking note that if they don’t act aggressively to collect any shortfall more people will strategically default. Now the game becomes much more serious, especially if you live in a state that allows the lender to go after you for any shortfall.
Source: Lita Epstein
Idaho Exports On The Rise
Export sales by Idaho companies grew by more than 3 percent from the third to fourth quarters of 2009, totaling $1.12 billion for October to December. Nationally, exports for the same period were nearly flat, at less than 1 percent growth.
Idaho export results in the fourth quarter increased by 5 percent from a year earlier.
“Idaho’s export results for the fourth quarter and for the year mirror the national economic conditions,” Damien Bard, administrator of the international division of the Idaho Department of Commerce, said in a release. “The growth shown in the last two quarters provide positive signs of an ongoing return to export health.”
Exchange rates are one factor in economic conditions that remain favorable for Idaho exporters, he later said in an interview. The semiconductor industry, which accounts for a large percentage of Idaho exports, remains down but is showing some signs of recovery, he said.
International sales of Idaho products for 2009 were down 22 percent compared to 2008’s record high, with U.S. exports down nearly 18 percent for the year, the Idaho Department of Commerce said. Significant declines in exports during the first three quarters of 2009 mean Idaho is still behind in its year-to-date results compared to 2008, when the value of state exports set a record at more than $5 billion for the full year. Idaho exports for 2009 totaled nearly $3.9 billion.
The top Idaho export category continues to be semiconductors, but exports of industrial equipment, precious metals, mineral concentrates, poultry and dairy products, fruit and seeds also grew during the fourth quarter.
The top export destinations for Idaho goods in 2009 were: Canada, Taiwan, China, Singapore and South Korea. In 2009, Idaho exported products to 150 countries.
Idaho companies export products ranging from integrated circuits to musical instruments to fresh produce. Idaho maintains trade offices in Taiwan, Mexico and China.
Source:IBR
Idaho Unemployment Rate Revised
The U.S. Department of Labor on Jan. 20 revised Idaho’s December unemployment rate downward a tenth to a seasonally adjusted 9.1 percent.
The revision held the rate steady from November at its highest level since May 1983, the Idaho Department of Labor said in a release. Using additional economic information gathered over the previous 10 days, the department determined that total employment was nearly 200 higher than originally forecast while the number of unemployed actually dropped from November to remain under 69,000.
It was the first time since April that the number of workers without jobs has declined from the previous month, Idaho labor officials said.
Despite persisting job losses across much of the economy, Idaho’s total number of employed remained at just over 685,000 – the fewest since January 2005. While the gap in total jobs continued to close in December, it was only fractionally smaller than in November at a year-over-year loss of 5.3 percent.
Idaho Department of Labor analysts anticipate the jobless rate could rise further over the next few months before leveling off at or below 9 percent during the second half of this year.
